Dividend on Foreign Life Insurance Policy

Dear Sir, I have a life insurance policy in Hong Kong which has an investment component and may properly declare dividend every year. For example the annual premium is $10,000, and after the first year the insurance company distribute $3,000 dividend to me. I can apply such $3,000 to set-off my insurance premium and thus the cash outflow for the second year will be reduced to only $7,000. In this case, do I need to declare such $3,000 as an income for first year? Please kindly advise. Thank you.

Hi,

Please refer to guidance at:

HS321 Gains on foreign life insurance policies (2023)

Thank you.