Israeli taxpayers’ declarations of profits from cryptocurrencies have reportedly failed to meet Israeli tax authorities’ expectations after the promulgation of a policy granting immunity from criminal prosecution to filers correcting their declarations.
According to a report published Wednesday by Globes, Israeli authorities had expected to gain up to $1 billion in taxes from “voluntary disclosures” allowed under an August 2025 policy, but have so far only received reports on a fraction of that capital income.
The local media outlet reported that the tax authority had received reports totaling $50 million in crypto capital, with the potential for billions of dollars in under-reported holdings.
“In the field of cryptocurrencies, the difficulty of the absence of an anonymous trace is even more acute,” said Iftach Simhony, CPA and head of the tax department at the law firm Prof. Bein, Globes reported. “When the risk assessment of some taxpayers is not high and the procedure itself does not initially provide certainty or anonymity, the incentive to submit to voluntary reporting is weakened.”
The voluntary disclosure procedure announcement by the tax authority grants crypto holders immunity from criminal prosecution, provided that the value of their holdings does not exceed the equivalent of $522,000 as of December 2024, that they have filed correct returns and paid their taxes in full by August 31, 2026. Globes reported that only 58 filers attempted to correct their taxes using the procedure.
Related: Israeli crypto industry pushes regulatory changes with strong public support
According to the financial stability of the Bank of Israel report From January to June 2024, Israelis held approximately $1 billion in crypto assets.
US Lawmakers Seek to Create De Minimis Exemption for Crypto Taxes
A group of members of the American Congress introduced legislation in May called the PARITY Act which would direct the United States Internal Revenue Service (IRS) to examine the creation of a de minimis exemption for digital assets. Under the proposed law, taxpayers could not be required to report small crypto transactions to the IRS.
Review: HYPE Pursues $100 Target, ETH May Drop Below $1,800: Market Moves
