Tax Authority changes rules from January 1 – what you need to know

Israel's Tax Authority will fully transition capital declaration submissions to a digital format starting January 1, 2027. Paper documents and scanned copies will no longer be accepted. The obligation applies to citizens who have received an official request from the authority. Tax Authority Director Shai Aharonovich noted that automation will speed up processing and increase transparency.

Israel's Tax Authority is preparing major changes to the submission process for capital declarations. From January 1, 2027, paper documents and scanned copies will be completely phased out. The only legal way to submit reports will be through a specialized online system. Until the end of 2026, a transition period allows the use of both digital channels and traditional paper forms. The digital platform was launched in May 2025, so many taxpayers have already experienced its functionality. The system allows users to fill out reports independently or through authorized representatives, attach necessary certificates, save incomplete drafts, and instantly receive electronic confirmation of successful submission. The obligation to submit a capital declaration applies not to all residents, but only to those citizens who have received an official request from the Tax Authority. The detailed report must include all assets and financial liabilities both inside Israel and abroad, including property of spouses and minor children. Tax Authority Director Shai Aharonovich noted that the move away from paper is driven by the desire to minimize human error and mistakes from manual data entry. Automation will not only speed up information processing but also make the procedure more transparent and convenient for taxpayers.