Wealth Declaration from 1.1.2027: Online Filing Only, Who Receives a Demand, and What Is Declared

Starting 1.1.2027, wealth declarations (capital statements) must be filed with the Israel Tax Authority exclusively through its digital system. A declaration submitted as a scanned document via the online inquiries system or delivered in hard copy at an assessing officer's counter will not be considered a valid filing, as stated by the Tax Authority in a letter to tax practitioners and taxpayers dated 7.9.2026. The change applies to anyone who has received a demand from the assessing officer. The filing deadline remains unchanged: 120 days from the date of the demand or from the date to which the declaration relates, whichever is later.

• Effective date: 1.1.2027.

• Who it applies to: Anyone who has received a demand from the assessing officer to file a wealth declaration under Section 135(1) of the Income Tax Ordinance.

• What is declared: Assets and liabilities in Israel and abroad belonging to you, your spouse, and your children who were under 18 during the tax year (Form 1219).

• Filing deadline: 120 days from the date of the demand or from the declaration date, whichever is later.

• Filing channel: The digital system only. Scanned submissions via the online inquiries system and manual filings will not be accepted.

• Sanction: A penalty for each month of delay under Section 188(g) of the Ordinance. Failure to comply with the demand also constitutes an offense under Section 216(1).

• Official source: "Wealth Declaration" service page on the Israel Tax Authority website.

Online filing has shifted from optional to mandatory. Here is the timeline:

1. 5.5.2025: The Israel Tax Authority launched its digital system for filing wealth declarations. Use of the system was optional, and at the same time an updated Form 1219 was introduced.

2. 7.9.2026: The Tax Authority announced the publication in the Official Gazette of the "Income Tax Rules (Online Filing of Wealth Declaration Reports), 5786-2026" and an order setting the commencement date of Section 135(1)(a1) of the Ordinance at 1.1.2027.

3. Until 1.1.2027: Filing was possible in three ways — through the digital system, by scanning and uploading via the online inquiries system, or manually at assessing office counters.

4. From 1.1.2027: The digital system only. In the words of the letter, it is "the sole mandatory channel."

The form itself was already updated in 2025. According to the Tax Authority's letter dated 5.5.2025, sections were added for digital assets and overseas real estate, securities are reported at cost, and holders must itemize property in their possession that they do not own. Anyone who previously filed a wealth declaration must note in the form the net worth declared at that time.

The change affects only those who have received a demand. A wealth declaration is not filed on your own initiative: according to the explanatory notes to Form 1219, it is completed upon the demand of the assessing officer under Section 135(1) of the Ordinance. According to the Tax Authority's glossary, the declaration is generally prepared as of December 31 of the preceding year, and the Authority uses it to verify whether the income level you reported is reasonable.

The declaration covers both spouses and children under the age of 18. Section 135(1)(a) allows a spouse to file a separate report on his or her own wealth, provided the declarant attaches a signed statement from that spouse to that effect. The change effective 1.1.2027 relates solely to the method of filing. The content of the declaration and the filing deadline remain unchanged.

1. Check the date of the demand and count 120 days from it, or from the declaration date if that is later. If the deadline falls after 1.1.2027, filing must be done online only.

2. Make sure that you or your tax representative can log in to the digital system and view the demand there. It is advisable to verify your access authorization several weeks before the deadline.

3. Gather the supporting documents listed by the Tax Authority: purchase agreements, balance confirmations, loan agreements, accounting ledger cards, and balance sheets.

4. Compare your net worth to the previous declaration. A gap between the two declarations that is not explained by the income you reported will be flagged in the assessing officer's reasonableness review, so it is advisable to examine it with your accountant or with an income tax attorney before transmitting the declaration.

5. After transmitting, make sure you receive an online filing confirmation and save it. According to the Tax Authority's service page, this is the way to verify that the filing has been completed.

Late filing incurs a penalty. Section 188(g) of the Ordinance imposes a fine of NIS 200 for each month of delay (the amount is CPI-adjusted every January), and NIS 400 per month for anyone who requested and received an extension and was late even then. In Form 1219, the Tax Authority notes that providing false information, omitting assets, or failing to file on time constitutes a criminal offense. Anyone who discovers during the preparation process assets or income that were not previously reported should explore the options for regularizing undeclared wealth after the voluntary disclosure procedure has ended before transmitting the declaration.

Wealth declarations and the assessments arising from them are handled at the office of Adv. & CPA Shlomi Vaknin. Before establishing the firm in 2024, he worked for 18 years as a senior partner at a tax law firm.