14 September 2026 · Taxation and digital assets
Israel’s voluntary disclosure procedure has ended, the crypto payment procedure has been extended
On 31 August 2026 the voluntary disclosure procedure came to an end, with 823 applications in all. The Israel Tax Authority published an extension of the procedure for paying tax on gains from the realisation of decentralised means of payment, to 31 December 2027.
The voluntary disclosure procedure
The voluntary disclosure procedure was published in Income Tax Execution Instruction 10/2025, and the text of the procedure bears the date 2 September 2025. It was the first procedure to address digital assets expressly. It expired on 31 August 2026.
According to the Tax Authority’s figures, 823 applications were filed in all. The capital reported came to about ILS 1.89 billion, and the estimated tax to about ILS 152.6 million. Of those applications, 203 concerned digital assets, covering about ILS 482.5 million of capital and about ILS 51 million of tax. About half the applications were filed in the final month before the procedure expired.
For comparison, the three earlier voluntary disclosure procedures, running in 2011 to 2012, 2014 to 2016 and 2017 to 2019, handled some 9,000 files and collected about ILS 5 billion in tax. The Tax Authority has said that it is not currently planning a further procedure.
The procedure for paying tax on gains from decentralised means of payment
On that same 31 August 2026 the Tax Authority published a notice extending the temporary procedure for receiving tax payments on gains from the realisation of decentralised means of payment, to 31 December 2027. This is the fifth extension of the procedure, and unlike its predecessors it runs for sixteen months rather than six to twelve.
The procedure applies to a person who reports a gain on the sale of digital currency as required and cannot pay the tax, because the commercial banking system in Israel has refused to accept the funds. Unreported capital is outside its scope. The tax is deposited directly into the Tax Authority’s account at the Bank of Israel, under form 909 and Execution Instruction 06/2024.
The two arrangements compared
| Voluntary disclosure | Crypto tax payment | |
|---|---|---|
| Purpose | Regularising unreported capital and income | Paying tax on reported income, where the bank refuses to accept the funds |
| Threshold condition | A voluntary approach before an examination or investigation has opened | Proof that at least one bank in Israel refused to accept the funds |
| Criminal aspect | The procedure included a track under which no criminal proceedings would be taken | The assessment agreement has no effect on criminal proceedings |
| Status | Ended on 31 August 2026 | In force to 31 December 2027 |
The crypto procedure governs the manner in which tax is paid. It does not govern the reporting of income that was not reported, and it contains no track under which criminal proceedings are foregone. With the end of the voluntary disclosure procedure, and in the absence of any notice of a further one, a person holding unreported digital assets remains within the ordinary rules of the Ordinance.
203 applications in digital assets out of 823 are about a quarter of the applications filed under the procedure, covering about a quarter of the capital reported under it.
Questions and answers
Has Israel’s voluntary disclosure procedure been extended?
No. The procedure published in Income Tax Execution Instruction 10/2025, the text of which bears the date 2 September 2025, expired on 31 August 2026. The Israel Tax Authority has said it is not currently planning a further procedure.
How many applications were filed under the procedure?
823 in all, covering about ILS 1.89 billion of capital and about ILS 152.6 million of estimated tax. 203 of them concerned digital assets, covering about ILS 482.5 million of capital and about ILS 51 million of tax.
Does the crypto tax payment procedure replace voluntary disclosure?
No. The crypto procedure applies to a person who reports a gain as required and cannot pay the tax because an Israeli bank refused to accept the funds. It does not regularise unreported capital and it contains no track under which criminal proceedings are foregone.
Until when is the crypto tax payment procedure in force?
Until 31 December 2027, under the Tax Authority notice of 31 August 2026. This is the fifth extension of the procedure and the longest, sixteen months.
What is open to someone holding unreported digital assets now?
The ordinary rules of the Income Tax Ordinance: an amended return, an assessment agreement and, in suitable cases, an approach to the Tax Authority, without the track that the closed procedure provided.
Further reading
Sources
Income Tax Execution Instruction 10/2025 · text of the voluntary disclosure procedure, 2 September 2025 · Israel Tax Authority figures summarising the procedure, September 2026 · Israel Tax Authority notice extending the temporary procedure, 31 August 2026 · Income Tax Execution Instruction 06/2024 · form 909
A general overview only, and not legal advice. The arrangements described here are temporary provisions, limited in time and open to change. Updated 14 September 2026.