About 15,000 taxpayers affected by incorrect NSman tax relief amounts due to 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.
Approximately 15,000 taxpayers, including NSmen and eligible parents and spouses, were impacted by incorrect NSman tax relief amounts due to a system error. The incorrect amounts affected the tax years 2025 and 2026, according to the Ministry of Defence (MINDEF) and Inland Revenue Authority of Singapore (IRAS). Of the affected taxpayers, around 7,000 will face an increase in their tax bill, while about 8,000 will experience a decrease.
The total amount that will be recovered is around S$930,000 (US$732,500), with approximately S$995,000 (US$732,500) being refunded. Most affected taxpayers will see an adjustment of less than S$200, though the range for each individual could be between under S$10 and about S$900, depending on their relief entitlement and income tax bracket.
MINDEF discovered the error in May 2026 while addressing NSmen's queries and reviewing their records. They conducted a comprehensive review of all NS tax relief records for YA 2025 and 2026, working in collaboration with IRAS to ensure accurate relief amounts in affected taxpayers' assessments. MINDEF has rectified the errors, and all impacted NSmen have been notified, while IRAS is revising the notices of assessment, set to be issued by September 2026.
Affected taxpayers do not need to take any action until they receive their revised notices. Those with additional tax payable on GIRO instalment plans will have their payments adjusted automatically, while the minority without GIRO plans should make payments by the due date on their revised notices. Refunds, if applicable, will be made automatically.
MINDEF and IRAS continue to collaborate to ensure NSmen receive the correct tax reliefs for their contributions to National Service.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.