Israel Crypto Tax Amnesty Draws $50 Million, Missing $1 Billion Goal
Summary
- Israel's crypto voluntary disclosure program has produced only about $50 million in reported income, far below its original $1 billion tax revenue target.
- Under the program, investors with holdings of no more than about $522,000 as of December 2024 can receive exemption from criminal penalties if they pay all taxes owed by Aug. 31, 2026.
- Industry participants estimate that the actual amount of unreported crypto assets could total billions of dollars, while Israel's central bank said residents hold about $1 billion in crypto assets.
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Israel's attempt to draw cryptocurrency investors into the tax system through a voluntary disclosure program has fallen well short of expectations.
Cointelegraph reported on June 3 that the Israel Tax Authority introduced the program in August 2025, giving crypto holders a chance to voluntarily disclose taxable income. Crypto-related income reported under the program has totaled about $50 million so far.
The authority had initially expected the measure to bring in as much as $1 billion in tax revenue.
Under the program, investors with holdings of no more than about $522,000 as of December 2024 can avoid criminal penalties if they amend their tax filings and pay all taxes due by Aug. 31, 2026.
Only 58 taxpayers have used the voluntary disclosure process to date, the report said.
Iftach Simhony, head of tax at Israeli accounting firm BDO Ziv Haft, said the lack of guaranteed anonymity in the crypto sector has discouraged participation. Without clear immunity or anonymity at the early stage of the process, the incentive to come forward is weak.
Industry participants estimate that the actual volume of unreported crypto assets may amount to billions of dollars.
Separately, the Bank of Israel said in its 2024 Financial Stability Report that Israelis held about $1 billion in crypto assets.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
