- The Israel Tax Authority‘s voluntary disclosure policy for crypto taxes has yielded far less revenue than the expected $1 billion.
- Only 58 filers have used the procedure, reporting a combined $50 million in crypto capital gains.
- The policy grants criminal immunity for holdings under $522,000 if correct reports are filed by August 2026.
- A U.S. congressional bill, the PARITY Act, seeks to create a *de minimis* exemption for small crypto transactions.
- According to the Bank of Israel, Israeli residents held roughly $1 billion in crypto assets in early 2024.
Israeli authorities are facing underwhelming results from a recent tax amnesty initiative for cryptocurrency holders. The Israel Tax Authority had expected to collect up to $1 billion from voluntary disclosures announced in August 2025.
Consequently, only a fraction of that amount has been reported so far. Local reports indicate a mere $50 million in crypto capital gains has been declared by just 58 individuals using the procedure.
The policy announced by the tax authority offers immunity from criminal charges under specific conditions. Taxpayers must have held less than $522,000 in crypto as of December 2024 and file correct reports before the August 2026 deadline.
However, experts point to the policy’s lack of Anonymity as a key deterrent. Iftach Simhony, a CPA, stated, “When the risk assessment of some taxpayers is not high, and the procedure itself does not offer certainty or anonymity in the first stage, the incentive to undergo voluntary disclosure is weakened.”
Meanwhile, lawmakers in the United States are pursuing a different approach to crypto taxation. A group in Congress introduced the PARITY Act in May, aiming to direct the IRS to review creating a de minimis exemption.
This proposed legislation would excuse taxpayers from reporting minor cryptocurrency transactions. The move contrasts with Israel’s strategy of offering a limited amnesty for past holdings.
Israeli crypto holdings remain significant despite the low disclosure rate. The Bank of Israel‘s financial stability report for early 2024 estimated residents held about $1 billion in crypto assets.
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