Is withdrawal from Saving Plans taxable in Singapore

Hi Tu,

​

No. Insurance payouts (withdrawals, claims, etc) in Singapore are not taxable, provided you are a tax resident of Singapore. Thus, your participating endowment plan with Manulife will not be subject to tax.

​

(Information valid as of June 2023 and provided Singapore doesn't change any tax laws)

​

If this changes, you actually have an obligation to update the insurer and you will have to consult a tax consultant in your new country of tax residence.

Hi Tu Anh,

​

Life insurance payouts, including withdrawals from investment-linked policies like your Ready Builder plan with Manulife, are generally not taxable in Singapore. This includes both death benefits and survival benefits, i.e., amounts you withdraw or receive while you are still alive.

​

However, tax laws can change and can also be complex. They can depend on many factors including your specific circumstances, how much you withdraw, and other sources of income you may have. Therefore, it is always a good idea to consult with a tax advisor or financial planner, or to reach out to the Inland Revenue Authority of Singapore (IRAS) or your insurer directly for the most accurate and up-to-date information.

​

Please note that this information is only relevant to Singapore tax residents. If you're a tax resident of another country, or a non-resident for Singapore tax purposes, you might be subject to different tax rules.