Your taxes: Capital declarations go online

The Jerusalem Post · LEON HARRIS · 2026-11-06 15:35 UTC

Capital declarations must be completed online starting January 1, 2027, the Israel Tax Authority (ITA) recently announced. What could this mean for you?

What is a capital declaration? A capital declaration (hatsharat hon) is a very Israeli thing. It is a listing of personal assets and liabilities. Assets minus liabilities equals capital. This doesn’t mean you pay tax on reported assets themselves. Instead, a capital declaration is a device used by the ITA to spot someone with assets that may be generating unreported income.

How does it work? The ITA has broad powers to request (i.e., demand) a capital declaration, but it doesn’t demand one from everyone every year.

Instead, the ITA usually demands a capital declaration from people with a tax file every five to six years. People in business or holders of 10% or more of the shares of a company usually do have a tax file. So do beneficiaries of a trust.

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