Israel’s tax authority says voluntary disclosures of crypto gains have fallen well short of expectations after it introduced a limited immunity program for taxpayers who correct past reports.
According to a report in Globes, officials had hoped the program—announced in August 2025—would yield as much as $1 billion in tax revenue from previously undeclared crypto profits. So far, the tax authority has recorded only about $50 million in disclosed crypto capital gains, a small fraction of what it anticipated.
Globes also reported that just 58 taxpayers have used the procedure to amend their filings. The program grants immunity from criminal prosecution to crypto holders who meet certain conditions: their holdings did not exceed the equivalent of $522,000 as of December 2024, they file accurate returns, and they pay the taxes due before the Aug. 31, 2026 deadline.
Some tax professionals say the limited take-up reflects concerns about anonymity and risk. Iftach Simhony, a CPA and head of the tax department at the Prof. Bein Law Office, told Globes that because the process does not guarantee anonymity at the outset and some taxpayers face low perceived audit risk, the incentive to come forward voluntarily is weakened.
The gap between reported disclosures and possible unreported holdings remains notable against broader estimates. The Bank of Israel’s financial stability report for January–June 2024 estimated Israelis held roughly $1 billion in crypto assets during that period, suggesting room for more declarations.
Meanwhile, developments in the United States could affect how small crypto transactions are treated for tax purposes. In May, a group of U.S. lawmakers introduced the PARITY Act, which would direct the Internal Revenue Service to study a potential de minimis exemption for digital assets. If adopted, that change could mean taxpayers would not be required to report very small crypto transactions to the IRS.
This report is based on publicly available coverage and official documents. Cointelegraph says it follows a policy of independent, transparent journalism and encourages readers to verify information independently.
