About 15,000 taxpayers affected by incorrect NSman tax relief amounts due to MINDEF system error

Of the 15,000 affected taxpayers, about 7,000 will see an increase in their tax bill while around 8,000 will see a decrease.


Singapore

About 15,000 taxpayers affected by incorrect NSman tax relief amounts due to MINDEF system error

Of the 15,000 affected taxpayers, about 7,000 will see an increase in their tax bill while around 8,000 will see a decrease.

About 15,000 taxpayers affected by incorrect NSman tax relief amounts due to MINDEF system error

File photo of national servicemen in Singapore. (Photo: CNA/Jeremy Long)

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SINGAPORE: About 15,000 taxpayers, comprising NSmen as well as eligible parents and spouses, have been affected by incorrect NSman tax relief amounts.

The incorrect tax relief amounts were across the tax years of assessment 2025 and 2026, the Ministry of Defence (MINDEF) and Inland Revenue Authority of Singapore (IRAS) said on Thursday (Sep 3).

Of the 15,000 affected taxpayers, about 7,000 will see an increase in their tax bill while around 8,000 will see a decrease.

In total, about S$930,000 (US$732,500) will be recovered and about S$995,000 will be refunded.

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“The vast majority of affected taxpayers will see either an upward or downward adjustment of less than S$200. 

“Depending on an individual’s relief entitlement and income tax bracket, the upward or downward adjustment may range from under S$10 to about S$900,” said MINDEF and IRAS.

The incorrect tax reliefs arose from an error in MINDEF’s system that generated incorrect NS activity records, which were then used to calculate tax reliefs for the affected NSmen, the authorities added.

“MINDEF identified the inaccuracies in May 2026 while reviewing queries from NSmen and checking the accuracy of their records. MINDEF subsequently conducted a thorough review of all NS tax relief records for YA 2025 and 2026, and has worked with IRAS to ensure that the correct relief amounts are reflected in the affected taxpayers’ assessments.”

MINDEF added that it has rectified the errors and all affected NSmen have been directly notified, while IRAS is in the process of revising the affected notices of assessment, which will be issued by September 2026 and will reflect any additional tax payable or refunds, where applicable. 

Affected taxpayers do not need to take any action before receiving their revised notices. Where revised assessments result in additional tax payable, taxpayers on GIRO instalment plans will have their instalment plans adjusted automatically. 

For the minority who are not on GIRO instalment plans, they should make payment by the due date stated in their revised notices. Refunds, if any, will be made automatically.

“MINDEF and IRAS will continue to work closely to ensure that all NSmen receive the correct tax reliefs in recognition of their contributions to National Service,” said the authorities.

Tax relief is provided to NSmen and their family to recognise their contributions to the nation.

An NSman or former NSman is given base tax relief of S$1,500 per year, while an NSman who has taken part in any Operationally Ready National Service activities such as in-camp training within his work-year will receive an additional S$$1,500.

Parents and spouse – who must be Singaporeans – of eligible NSmen will also receive tax relief of S$750 per year.

Each taxpayer is entitled to only one type of NSmen tax relief. 

Source: CNA/ng(mi)

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