An Israeli taxpayer’s disclosure of cryptocurrency profits has reportedly fallen miniature of the Israeli tax authority’s expectations after adopting a policy providing immunity from criminal prosecution to those filing corrections on their returns.
According to Wednesday’s Globes report, Israeli authorities do expected gain up to $1 billion in taxes from “voluntary disclosures” allowed under the August 2025 policy, but so far they have only received reports on a fraction of those capital gains.
A local news outlet reported that the tax authority has received reports of a total of $50 million in crypto capital, with the potential for billions of dollars in unreported holdings.
“In the cryptocurrency industry, the difficulty of not having an anonymous trace is even more acute,” Iftach Simhony, CPA and head of the tax department at the Law Firm of Prof., told Globes. Bein. “When the risk assessment of some taxpayers is not high and the procedure itself does not provide certainty and anonymity at the first stage, the incentive to voluntarily disclose information is weakened.”
Voluntary disclosure procedure announced by the tax authority provides cryptocurrency holders immunity from criminal charges provided that their holdings did not exceed the equivalent of $522,000 as of December 2024, they filed correct reports and paid their taxes in full before August 31, 2026. Globes reported that only 58 filers attempted to correct their taxes using this procedure.
Related: The Israeli crypto industry is pushing regulatory changes with powerful public support
According to the financial stability of the Bank of Israel report from January to June 2024, Israelis held crypto assets worth approximately $1 billion.
US lawmakers are seeking to create a de minimis exemption from cryptocurrency taxes
A group of members of the US Congress introduced legislation in May called the PARITY Act, which would direct the US Internal Revenue Service (IRS) to review the creation of slightly exemption for digital assets. Under the proposed law, taxpayers could not be forced to report diminutive cryptocurrency transactions to the IRS.
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