A One-Time Opportunity: Israel Tax Authority Voluntary Disclosure Procedure 2025 Unveiled

The Israel Tax Authority is offering taxpayers, businesses, individuals, and corporations that have not properly reported their income a valuable opportunity to regularize their tax affairs. The initiative is designed to encourage the correction of filings and past tax offenses, together with a commitment, coordinated with the State Attorney’s Office, that no criminal proceedings will be initiated against an applicant who submits a voluntary disclosure, subject to the conditions set out in the procedure. The Israel Tax Authority Voluntary Disclosure Procedure 2025 constitutes a temporary measure with limited validity. A thorough understanding is essential for anyone seeking to take advantage of this window. This article presents all material particulars, the preconditions, and the required steps, and provides a clear roadmap for proper conduct. We recognize the importance of accuracy and strict timelines, and our goal is to provide comprehensive guidance.

In Plain Terms: What Is Voluntary Disclosure

Voluntary disclosure is an admission of error and an effort to correct it. Instead of concealing or fearing severe consequences, the taxpayer approaches the Tax Authority and reports unreported income. With the guidance of a certified public accountant, the taxpayer navigates the process safely and efficiently. The taxpayer prevents escalation and, in exchange, the Tax Authority offers a “deal”: the taxpayer pays the additional tax liability instead of facing criminal prosecution. The process grants peace of mind and enables the taxpayer to move forward without fear.

Relocation, New Immigrants, and Returning Residents Taxation

Our firm handles all tax aspects related to relocation and moving abroad, including the following issues: residency and the timing of residency termination, reporting obligations, tax treaties, equity compensation taxation, complex tax calculations, and more. In addition, the firm advises new immigrants and returning residents on maximizing the tax benefits granted to them during the exemption period, including matters involving “mixed activity” and exposure to a “permanent establishment,” and assists them in optimally preparing for the end of the tax benefits period.