Israel Crypto Tax Disclosures Fall Far Below Expectations Despite Amnesty Program

Israel’s tax authority has reportedly expressed disappointment after a voluntary disclosure program for crypto investors generated far fewer filings than expected. The initiative, introduced in August 2025, was designed to encourage crypto holders to correct previous tax reports while receiving immunity from criminal proceedings.

Authorities had hoped the program would generate up to $1 billion in tax revenue from previously unreported cryptocurrency gains. However, the total amount disclosed so far stands at only about $50 million, well below expectations.

Only 58 Crypto Holders Use Disclosure Window

According to reports, just 58 taxpayers have taken advantage of the voluntary disclosure procedure. The program allows eligible individuals to avoid criminal charges if they accurately report their crypto holdings and fully pay outstanding taxes before Aug. 31, 2026.

The protection applies to crypto investors whose holdings did not exceed approximately $522,000 as of December 2024.

Lack of Anonymity Seen as Key Obstacle

Tax professionals say one reason for the low participation rate is the absence of an anonymous filing option during the initial stage of disclosure. Some investors may be reluctant to come forward without stronger privacy protections.

The Bank of Israel previously estimated that Israeli residents held around $1 billion worth of cryptocurrency assets, suggesting significant amounts may still remain unreported.