Up to S$900 adjustment for taxpayers affected by incorrect NSman tax relief amounts
About 15,000 Singapore taxpayers will see an adjustment in their taxes after receiving incorrectly computed amounts of operationally ready national serviceman (NSman) tax relief.
More than half of those affected will end up paying less, said the Ministry of Defence (MINDEF) and Inland Revenue Authority of Singapore (IRAS) in a news release on Thursday (3 Sept).
Source: Zaqy Mohamad on Facebook
Incorrect NSman tax relief amounts reflected in 2025 & 2026
According to MINDEF and IRAS, the taxpayers affected comprised NSmen as well as their parents and spouses who were eligible for the relief.
The incorrect amounts were reflected across two years of assessment — 2025 and 2026.
No full-time national servicemen (NSFs) were affected.
Error caused by incorrect NS activity records
The error was caused by incorrect national service (NS) activity records generated in MINDEF’s system, the statement explained.
These were used to calculate tax reliefs for the affected NSmen.
The inaccuracies were discovered in May this year, while MINDEF was reviewing NSmen’s queries and checking the accuracy of their records.
A “thorough review” of all NS tax relief records was then conducted across the two years.
Source: Ministry of Defence, Singapore (MINDEF) on Facebook
Errors recitified & revised notices to be sent
The errors have been rectified by MINDEF, which has worked with IRAS to ensure that the affected taxpayers’ assessments will reflect the correct tax relief amounts.
IRAS is now revising the Notices of Assessment (NOAs) for all affected taxpayers.
The revised NOAs will be issued to the affected taxpayers by this month, and they do not need to take any action before that.
NSmen who are affected have been directly notified.
Taxpayers will either pay more or get a refund
When the 15,000 taxpayers receive their revised NOAs, it will inform them that they must either pay additional tax or get a refund.
It is estimated that around 8,000 — or more than half of them — will see a decrease in their tax bill, MINDEF and IRAS said.
The other 7,000 will have to pay more.
Source: Google Maps
Those who need to pay additional tax will have their GIRO instalment plans automatically adjusted, but the minority not on GIRO should pay by the due date stated in the NOA.
Refunds, on the other hand, will be disbursed automatically.
‘Vast majority’ will see below S$200 adjustment
The adjustment, whether upwards or downwards, should be between less than S$10 and about S$900, depending on the taxpayer’s relief entitlement and income tax bracket.
But the “vast majority” will see their tax bill adjusted by less than $200, according to the statement.
About S$930,000 is thus expected to be recovered from the affected taxpayers, but about S$995,000 will be refunded to other taxpayers.
NSman tax relief given to recognise NS contributions
According to IRAS, all NSmen who have completed their full-time NS liabilities are entitled to NSman tax relief to recognise their contributions to NS.
It is based on NS done in the previous work year, with parents and wives of NSmen also eligible for S$750 in tax relief to recognise their support.
Taxpayers who have not performed NS activities in the preceding year and are not a key command and staff appointment holder generally get S$1,500 in tax relief.
MINDEF and IRAS pledged to continue to “work closely” to ensure all NSmen receive the correct tax reliefs in recognition of their contributions to NS.
Also read: IRAS Warns Of Scam Claiming To Offer Tax Refunds, Do Not Provide Personal Information
IRAS Warns Of Scam Claiming To Offer Tax Refunds, Do Not Provide Personal Information
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Featured image adapted from Zaqy Mohamad on Facebook and Google Maps.
