Are you an Israeli citizen or business owner with undisclosed income or assets, either in Israel or abroad? Now is the time to act.

Dear Clients,

On August 25, 2025, the Israeli Tax Authority announced a new, one-year-only Voluntary Disclosure Procedure. This is a limited-time opportunity—and potentially the last of its kind—to settle your past tax matters, legally bring foreign funds into Israel, and secure your financial future for generations to come.

Why Act Now?

This new procedure offers a crucial opportunity to:

• Gain immunity from criminal proceedings: Settle your past tax liabilities without the risk of a criminal investigation.
• Pay what you owe, without penalties: Pay the taxes you legally owe on past income without facing fines.
• Legally transfer funds: Seamlessly bring money from abroad into the Israeli banking system, overcoming “Know Your Customer” (KYC) and anti-money laundering regulations with an official clearance letter from the Tax Authority.

The global landscape is changing. Israel has signed information-sharing agreements with many countries, giving the Tax Authority powerful new tools to identify undisclosed foreign accounts. The time to get ahead of this is now, before they come to you.

Our Expertise Is Your Advantage

Our team has successfully handled over one hundred voluntary disclosure cases, both large and small, with a strong focus on foreign income and trusts. We are ready to guide you through this new process.

The procedure has specific requirements, and we can help you determine if you qualify. You may be eligible if you:

• Have no prior tax-related criminal convictions.
• Have not previously had a voluntary disclosure request approved.
• Are not currently under active investigation by the Tax Authority.
• The Tax Authority does not already have information about your undisclosed assets.

Please note: New immigrants and veteran returning residents are exempt from reporting foreign-sourced income and assets for ten years from the date they became residents. Therefore, this procedure is not needed during this exemption period.

The Process

The new procedure features two paths, and we can advise you on which is right for your situation:

• The Green Track: For less complex cases, this expedited process can simplify everything and may lead to a better tax outcome. This track is available for certain types of income, such as:
  • Financial income: For accounts with a principal of less than ₪4,000,000 as of December 31, 2014, with no significant deposits in the last 10 years.
  • Rental income: If total annual rental income (in Israel or abroad) is under ₪250,000.
  • Digital assets: If total income is under ₪500,000 for the entire disclosure period and the fair market value of the assets is under ₪1,500,000 as of December 31, 2024.
• The Regular Track: For all other cases, we will help you negotiate a comprehensive tax agreement with the Tax Authority.

Don’t Miss This Opportunity

This is a rare and valuable chance to resolve your past tax issues and gain peace of mind. Taking this step not only secures your own financial future but also ensures a clean, legal path for your wealth to be safely passed on to your children and future generations.

To schedule a meeting and for more details, please contact Hai Bahalul, CPA (Israel) at hai@hb-cpa.co.il