Are Insurance Payouts Taxable In Singapore. This is because the payment back of the policy payments or investments is merely a “return of basis.”. Generally, life insurance proceeds beneficiaries receive due to the death of the insured person are not included in income and do not need to be reported.
The following payouts are not taxable either because a specific exemption has been granted to exempt the payouts from tax or the payouts are. Generally, overseas income received in singapore on or after 1 jan 2004 is not taxable, except in some circumstances. In short, you only pay tax on your insurance payout if it is or forms part of your taxable income.