SINGAPORE: An error in the Ministry of Defence’s system caused about 15,000 taxpayers, comprising operationally ready national servicemen (NSmen), as well as eligible parents and spouses, to be affected by wrong NSman tax relief amounts.
The incorrect tax relief amounts were across the tax years of assessment 2025 and 2026, said Mindef and the Inland Revenue Authority of Singapore (IRAS) in a joint statement on Sept 3.
Of the 15,000 affected taxpayers, about 7,000 of them will have an increase in their tax bill, while around 8,000 of them will have a decrease, the two authorities said.
In total, about S$930,000 (US$732,369) will be recovered and about S$995,000 will be refunded, they added.
The vast majority of affected taxpayers will see either an upward or downward adjustment of less than S$200, they said. The adjustment may range from under S$10 to about S$900, depending on an individual’s relief entitlement and income tax bracket.
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 statement said.
According to IRAS’ website, the NSman Relief – to which all eligible NSmen are entitled – is to recognise their contributions to national service.
NSman wife and NSman parent reliefs are also given to the wives and parents of NSmen to recognise the support they give to their husbands and sons, the website said.
This relief is allowed based on national service done in the previous work year (from April 1 to March 31).
The inaccuracies were identified in May 2026 while reviewing queries from NSmen and checking the accuracy of their records, the statement added.
The statement said: “Mindef subsequently conducted a thorough review of all NS tax relief records for years of assessment 2025 and 2026, and has worked with IRAS to ensure that the correct relief amounts are reflected in the affected taxpayers’ assessments.”
Mindef said it has rectified the errors and all affected NSmen have been notified directly.
In a letter from Mindef to an affected NSMen, which was uploaded on social media platform Reddit, the ministry said it has implemented additional measures to prevent a recurrence of the issue that caused the error.
IRAS is in the process of revising the affected notices of assessment (NOAs), which will be issued by September and will reflect any additional tax payable or refunds, where applicable, the statement said.
Affected taxpayers do not need to take any action before receiving their revised NOA.
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 NOA. Refunds, if any, will be made automatically.
The statement said: “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.” - The Straits Times/ANN
