Israeli business media Globes reported on June 4 that the Israel Tax Authority will roll out a voluntary crypto tax disclosure program in August 2025. The program was originally expected to generate up to $1 billion in tax revenue, but so far the tax authority has only received 58 disclosure filings. The disclosed amount of crypto assets is about $50 million.
Specific terms of the program: criminal immunity, holding limits, and deadlines
According to Globes, the confirmed terms of Israel’s voluntary crypto tax disclosure program are as follows:
Criminal immunity: Eligible crypto holders can avoid criminal prosecution after correcting their filings and paying all taxes owed
Applicable cap: Criminal immunity protection only applies to cases up to December 2024, where the holder’s crypto asset value does not exceed $522,000
Deadline: Taxpayers must submit accurate disclosure information and complete tax payments by August 31, 2026
As of Globes’ reporting date, no changes have been made to the above terms since the program was launched in August 2025.
Tax expert assessment: the confirmation impact of lacking anonymity in the first phase
Tax expert Iftach Simhony told Globes that the program has a major structural flaw for crypto taxpayers: there is no anonymous route in the first stage of reporting.
Simhony’s assessment specifically pointed out that the lack of anonymity is especially serious in crypto cases. Taxpayers who believe their enforcement risk is low may be unwilling to participate in a process that requires exposing their own information before certainty is obtained. The Israel Tax Authority has not put forward any official adjustment plan for this design flaw.
Israeli banking data: a benchmark for comparison provided by a $1 billion holding size
Based on the Bank of Israel’s 2024 first-half financial stability report, the total value of crypto assets held by Israelis is about $1 billion. This figure is directly tied to the basis for setting the tax authority’s expected tax target of $1 billion, and it also shows that the disclosed $50 million accounts for only about 5% of the overall crypto asset holdings confirmed by Israelis.
FAQ
What specific limitations apply to the criminal immunity protection in Israel’s voluntary crypto tax disclosure program?
According to Globes, the conditions for criminal immunity protection are: as of December 2024, the holder’s crypto asset value does not exceed $522,000; and taxpayers must correct their filings and pay all taxes owed by August 31, 2026. Taxpayers with crypto assets worth more than $522,000 are not covered by this immunity.
Why is the program’s response rate far lower than official expectations?
Tax expert Iftach Simhony confirmed in an interview with Globes that the lack of an anonymous route in the program’s first phase is the main obstacle: taxpayers need to reveal their identity before the process is completed, which creates a clear participation barrier for holders who perceive a lower enforcement risk. The Israel Tax Authority has not offered any official explanation for the sluggish response rate or proposed any program adjustments.
How is the $1 billion crypto asset size estimated by the Bank of Israel related to the tax authority’s expected targets?
In the Bank of Israel’s 2024 first-half financial stability report, the $1 billion crypto asset holding size is an important background benchmark for understanding the tax authority’s setting of the $1 billion tax expectation. In remarks to Globes, Israeli officials said they believe that a large portion of crypto-related profits still remains outside the tax system; the disclosed $50 million is only a small part of the assets that may be underreported.
