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Insurance Cash value from insurance, few questions about it...

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TSeastwest
post Jan 15 2019, 09:45 AM, updated 6y ago

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Hi, I've a few question regarding below situation:
1) I've takaful policy and paid it by myself.
2) insurance policy under my name but the premium paid by my work company.

Both have some amount of cash value that can be taken out. If I take out any amount of cash value from either policy,
1) Is this considered as income?
2) is this money taxable? Do I have to declare it during my tax declaration?

Thank you.

This post has been edited by eastwest: Jan 15 2019, 12:57 PM
Holocene
post Jan 15 2019, 10:50 PM

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You will not be taxed on the cash value when you withdraw it.

Whereas for the "insurance policy under your name but the premium paid by my work company", the premium is a form of BIK and is taxable. Please refer to your HR for further details on the matter.

Best,
Jiansheng

This post has been edited by Holocene: Jan 15 2019, 10:51 PM
TSeastwest
post Jan 16 2019, 08:10 AM

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QUOTE(Holocene @ Jan 15 2019, 10:50 PM)
You will not be taxed on the cash value when you withdraw it.

Whereas for the "insurance policy under your name but the premium paid by my work company", the premium is a form of BIK and is taxable. Please refer to your HR for further details on the matter.

Best,
Jiansheng
*
Thanks jiansheng.. May i know what is BIK?
vanitas
post Jan 16 2019, 08:34 AM

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QUOTE(eastwest @ Jan 16 2019, 08:10 AM)
Thanks jiansheng.. May i know what is BIK?
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Benefits in kind.
WaCKy-Angel
post Jan 16 2019, 08:41 AM

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QUOTE(eastwest @ Jan 16 2019, 08:10 AM)
Thanks jiansheng.. May i know what is BIK?
*
iinm those premiums paid by company on your behalf shall be declared as income/benefit and is taxable.
So if u had already declared it earlier then should not need to be declared again.

So i guess u didnt include those benefits in your declaration?
TSeastwest
post Jan 16 2019, 08:41 AM

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QUOTE(vanitas @ Jan 16 2019, 08:34 AM)
Benefits in kind.
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I see.. Thanks.. Will ask my company hr abour this..
Holocene
post Jan 16 2019, 11:12 AM

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QUOTE(eastwest @ Jan 16 2019, 08:10 AM)
Thanks jiansheng.. May i know what is BIK?
*
Hey eastwest,

As the other forummers have mentioned to you BIK is Benefit in Kind. You are taxable on the premium amount and not the cash value.

Best,
Jiansheng
TSeastwest
post Jan 16 2019, 12:09 PM

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QUOTE(Holocene @ Jan 16 2019, 11:12 AM)
Hey eastwest,

As the other forummers have mentioned to you BIK is Benefit in Kind. You are taxable on the premium amount and not the cash value.

Best,
Jiansheng
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I don't really understand actually.. Let say the annual premium amount is 2.4k.. So this will be considered as part of gross income for me?

Let say i took out 5k from the cash value, so i no need to declare it in my tax declaration, right?
Holocene
post Jan 16 2019, 12:46 PM

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QUOTE(eastwest @ Jan 16 2019, 12:09 PM)
I don't really understand actually.. Let say the annual premium amount is 2.4k.. So this will be considered as part of gross income for me?

Let say i took out 5k from the cash value, so i no need to declare it in my tax declaration, right?
*
Yes, you should be able to see it in your EA form.

No, you do not need to declare it in your tax declaration.
TSeastwest
post Jan 16 2019, 12:47 PM

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QUOTE(Holocene @ Jan 16 2019, 12:46 PM)
Yes, you should be able to see it in your EA form.

No, you do not need to declare it in your tax declaration.
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Thanks holocene smile.gif

 

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