The new Israeli Tax Authority voluntary disclosure process allows taxpayers to “come clean with the tax office” and resolve previous reporting mistakes or hidden income before facing serious consequences. This is an opportunity to “disclose before they find you,” avoid criminal investigation, and finally put tax worries aside—all within a legal, limited-time framework.
What is Voluntary Disclosure?
Voluntary disclosure is a legal process that enables Israelis to report hidden assets or income and receive immunity from criminal prosecution for select tax offences. This new process—open until August 31, 2026—is your chance to get right with the tax authorities while the door is open.
Who Should Consider Voluntary Disclosure?
This process is an excellent solution for anyone who realises they have tax reporting gaps or undisclosed income. Examples include:
- Individuals with inherited foreign assets or bank accounts not previously reported.
- Self-employed professionals with business income that wasn’t declared.
- Owners of rental properties in Israel or abroad who did not report all rental income.
- Investors with income from stocks, bonds, or digital assets not fully disclosed.
- Israeli citizens who have assets in digital currencies, where reporting requirements were unclear.
- Anyone who became aware that a company they control or a spouse’s finances involved unreported sums.
- Trusts for Israeli beneficiaries – who haven’t opened a tax file for the Trust and reported the Trust income.
Essentially, if there’s any legitimate reason for concern, now is the time to come clean with the tax office.
Benefits of Coming Clean
Choosing a voluntary disclosure now means:
- Avoiding criminal investigations for tax offences, provided all requirements are met.
- Settling all debts and penalties transparently, with a clear plan and official agreement.
- Immunity applies only to the information disclosed and to offences covered by the process (like income tax, VAT, capital gains tax, and more).
- Peace of mind, knowing you have resolved past mistakes before the tax authority discovers them.
Why Use an Experienced Representative?
The process of voluntary disclosure involves sensitive legal statements, financial documentation, and direct negotiations with the senior staff at the Israeli Tax Authority.
Using an experienced representative offers strong advantages:
- Ensures all application forms and data are complete, accurate, and submitted in the required online format.
- Proper handling of negotiations, data verification, and direct communications with the tax authority.
- Minimises risks of rejection or unintended self-incrimination.
- Provides strategic advice on your best options for coming clean before they find you.
- Prepares tax calculations with advance planning for the lowest tax exposure.
Act Now Before It’s Too Late
The voluntary disclosure program is only available until August 31, 2026. If you have any doubts or concerns about your past tax returns, assets, or overseas income – take action as soon as possible. The Israeli Tax Authority is offering a unique chance to fix mistakes and clear up your affairs, protecting you from future criminal prosecution. Leaving it to the last minute reduces your negotiation ability.
For a confidential review and to decide the best way forward for you, contact us for some guidance.
