CARF in Israel: Automatic Exchange of Crypto Information Expected by 2028

Under CARF, the OECD's standard for automatic exchange of information on crypto assets, Israel is currently listed in the group of countries that will begin exchanging information by 2028. This is according to the commitment list updated by the Global Forum on 23.6.2026. In 2024, the Minister of Finance announced Israel's participation "starting in 2027." Once the mechanism is operational, foreign tax authorities will transmit to the Israel Tax Authority the identification details of customers who are Israeli tax residents, along with annual data on the conversions and transfers they carried out through exchanges and brokers.

• The standard: CARF, the OECD's Crypto-Asset Reporting Framework. It is administered by the Global Forum on Transparency and Exchange of Information for Tax Purposes.

• Israel's commitment: Signing the Competent Authority Agreement (CARF MCAA) on 19.11.2024, and the Minister of Finance's announcement on 20.11.2024.

• First exchange date: By 2028, according to the list dated 23.6.2026. In the list dated 17.6.2025, Israel appeared in the 2027 group.

• Who reports: Service providers that carry out crypto-asset conversions on behalf of clients, such as exchanges and brokers.

• What is reported: Name, address, tax residency and tax identification number, and annual aggregate amounts per asset type.

• Legislation in Israel: As of 26.10.2026, we have not found any enacted law or bill implementing the standard.

Israel's target date shifted by one year. The official 2024 announcement referred to 2027, but in the OECD list from June 2026, Israel already appears in the 2028 group, alongside Canada and Switzerland. We have not found an Israeli announcement explaining the change.

1. November 2024: The State Comptroller's report on digital currency taxation found that the Israel Tax Authority had not made sufficient progress in its preparations for CARF.

2. 19.11.2024 and 20.11.2024: Israel signed the Competent Authority Agreement, and the Ministry of Finance and the Israel Tax Authority issued a joint announcement on joining CARF.

3. July 2025: The Israel Tax Authority published a call for position papers on implementing the standard, with a deadline of 30.9.2025. According to the call, information exchanges are expected to begin in 2027 "subject to the enactment of the required legislation."

4. 23.6.2026: The Global Forum list moves Israel to the group of countries that will exchange information by 2028.

According to the Global Forum's 2025 report, a country exchanging information in 2027 must have legislation in force by early 2026, because service providers collect the data during the year preceding the exchange. In Israel, the first data year will be determined by legislation that has not yet been published.

The mechanism primarily affects Israeli tax residents who hold an account with an exchange or broker operating in a country that has committed to CARF. The list dated 23.6.2026 includes 76 countries: 46 in the 2027 group — including the United Kingdom, Germany, France, and Japan — and 29 in the 2028 group. The United States has committed to exchanging information only by 2029.

Reporting is done through service providers, which means coins held in a private wallet are not reported on their own. However, under the 2023 text of the standard, the exchange also reports transfers sent or received by the customer and classifies them by type — for example, airdrop or staking income. A crypto payment to a business exceeding USD 50,000 is reported as a separate category.

CARF does not change your reporting obligations. The sale of a virtual currency is already taxable today, under the rules of taxation of crypto gains, and must be reported in your annual tax return even when no foreign authority transmits any information.

1. List every exchange or broker you have used, and the country in which each one is registered.

2. Compare the transaction history from each account with what you reported in your annual tax returns for the open years.

3. Keep the documents that prove your acquisition cost and the source of funds. Without them, it is difficult to calculate the real capital gain.

4. If a discrepancy is found, explore the options for regularization. Voluntary disclosure for crypto under the temporary procedure is no longer available: the procedure ended on 31.8.2026, and to date no new procedure has been published.

The Tax Authority is already active in this area even without CARF. On 6.10.2026, it announced two crypto investigations involving unreported trading.

This area is handled at our firm by Adv. and CPA Shlomi Vaknin, who served for approximately a decade as a national supervisor in the Professional Division of VAT at the Israel Tax Authority.