What one allocation keeps that another does not
Two portfolios with the same amount and horizon, compared after fees and after the tax that applies to you. For a resident taxed only in Singapore the difference is gross return and fees; where another system still taxes you, the tax character of each asset class joins them.
By Eldar Edmond Grady, CEO, PPLI.com. Research checked 27 September 2026.
Singapore law as at 27 September 2026, Year of Assessment 2026, for an individual resident in Singapore who holds the portfolio or policy personally. Home-country rates are the 2026 figures stated on the page.
PPLI.com is a research publisher, not an insurer, broker or financial adviser, and is not licensed by the Monetary Authority of Singapore. Nothing here is an offer of insurance. To buy a policy, deal with an insurer or adviser licensed or exempted by MAS and check it on the MAS Financial Institutions Directory.
Three differences between two allocations
Allocations differ in gross return, in fees and in how their return is taxed. The first is an investment choice. The other two are the cost of holding it.
Tax character means three things: how much of the return arrives as income, how much of that income is dividends, and how much of the growth is realised each year. Under the Singapore-only preset none of them costs anything, because every rate is 0.
Under the US preset interest pays 40.8% and realised gains 23.8% every year, so a bond-heavy allocation and an equity allocation with low turnover can be dozens of basis points apart before any fee. Under the mainland China preset everything pays 20%, and the gap narrows to how much of the return is taxed each year rather than at what rate.
Listed equities against bonds, first year
Hypothetical. Equities returning 7% with a quarter paid out as dividends and 10% of the rest realised each year; bonds yielding 4.5%, all interest. No fees.
Singapore only equities 0 bp bonds 0 bp
US person 7% x (25% x 23.8% + 75% x 10% x 23.8%) = 54 bp
4.5% x 40.8% = 184 bp
China domicile 7% x (25% x 20% + 75% x 10% x 20%) = 46 bp
4.5% x 20% = 90 bpOn S$1,000,000 in each, a US person loses S$5,415 a year on the equities and S$18,360 on the bonds in the first year. For a resident taxed only in Singapore both figures are nil, and the choice rests on return, risk and fees alone.
What the comparison holds constant
The engine
Both allocations run through the same year-by-year projection with the same amount, horizon and tax system. Fees are taken first; income is taxed as it arises; growth is taxed only when turnover realises it.
The shapes
Balanced, endowment, alternatives-led, income-oriented and equity-concentrated. Each asset class carries the same return, fee and tax character in every shape, so the shapes differ only in weights.
The tax system
The chip row loads a preset. For the UK-return preset this compact tool applies the rates after return; the wealth simulator models the years in Singapore separately.
Common questions
Does the allocation or the tax matter more?
For a resident taxed only in Singapore, only the allocation and the fees matter, because the tax is 0. Where another system taxes you every year, tax can be as large as fees, and the instrument shows both.
Where do the returns come from?
They are illustrative starting assumptions, not forecasts and not figures from a dataset. Every figure can be changed in the wealth simulator.
Instruments and related reading
Wealth simulatorThe same comparison over a whole horizon, with withdrawalsOpen →Tax drag calculatorThe tax layer on its own, row by rowOpen →Wealth Intelligence profileYour own allocation, carried into every instrumentOpen →Investment flexibilityWhat can be held inside a policy, and who decidesOpen →PPLI.com is a research publisher, not an insurer, broker or financial adviser, and is not licensed by the Monetary Authority of Singapore. This page is general information about how tax systems treat a portfolio and a life insurance policy. It is not an offer of insurance and not advice on any product. A policy from an insurer not licensed in Singapore is outside the Policy Owners' Protection Scheme and outside Singapore statutory nominations.
The authorities this page relies on
Income Tax Act 1947 s 13(7A), s 13(1)(za) and s 13(1)(zd)
Foreign-sourced income received in Singapore by a resident individual is exempt, except income received through a partnership in Singapore (s 13(7A)(b)). Dividends paid by Singapore-resident companies under the one-tier system are exempt (s 13(1)(za)), as is interest on deposits with approved banks (s 13(1)(zd)). sso.agc.gov.sg, ITA 1947 s 13
IRAS, gains from sale of property, shares and financial instruments
Gains from the sale of shares and financial instruments are generally not taxable, and gains from trading can be. IRAS lists "payouts from insurance policies as they are capital receipts" among gains that are generally not taxable. iras.gov.sg, gains
Rev. Proc. 2025-32 and 26 USC 1411
For 2026 the 37% rate applies above US$640,600 of taxable income for a single filer and the 20% rate on long-term gains and qualified dividends above US$545,500. The 3.8% net investment income tax (s 1411) does not apply to nonresident aliens, so it does apply to US citizens abroad. Top combined rates: 40.8% and 23.8%. irs.gov, Rev. Proc. 2025-32
gov.uk, tax rates on property, savings and dividend income
For 2026/27: savings income at 20, 40 or 45%, dividends at 10.75, 35.75 or 39.35% from 6 April 2026. Savings rates rise to 22, 42 and 47% from 6 April 2027. gov.uk, rate changes
PRC Individual Income Tax Law, arts 1, 3 and 4
A person domiciled in China, meaning habitually resident there because of household registration, family or economic ties, is a resident taxed on worldwide income (art 1). Interest, dividends and property-transfer income are taxed at 20% (art 3). Insurance compensation is exempt (art 4). chinatax.gov.cn, IIT Law
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