Do I need to report foreign stock options on my Israeli tax return?

Yes. Israeli tax residents must report income from foreign stock options and RSUs on their annual Israeli tax return (Form 1301), even if you believe the income is exempt under the new immigrant rule. Exempt income may still need to be disclosed depending on your circumstances. Failure to report can result in penalties and interest. If you have unreported prior years, Israel's voluntary disclosure program may allow you to regularize your position with reduced penalties.