SINGAPORE — About 15,000 taxpayers have been affected by incorrect NSman tax relief amounts after an error in the Ministry of Defence’s (MINDEF) system generated inaccurate National Service activity records.
The affected taxpayers include operationally ready national servicemen (NSmen), as well as eligible NSman parents and spouses. The incorrect relief amounts affected Years of Assessment (YA) 2025 and 2026, according to a joint statement from MINDEF and the Inland Revenue Authority of Singapore (IRAS) on Sept. 3.
The issue could have resulted in taxpayers either receiving too much or too little tax relief.
Thousands could see their tax bills change
Of the approximately 15,000 affected taxpayers, around 7,000 will see their tax bills increase, while approximately 8,000 will receive a reduction.
Overall, MINDEF and IRAS said about S$930,000 will be recovered, while approximately S$995,000 will be refunded to affected taxpayers.
For the vast majority, the adjustment will be less than S$200. Depending on an individual’s tax-relief entitlement and income-tax bracket, however, the adjustment could range from less than S$10 to about S$900.
How did the error happen?
According to MINDEF, the problem originated from an error in its system that generated incorrect NS activity records. Those records were subsequently used in determining the NSman tax relief amounts provided to eligible taxpayers.
MINDEF said it discovered the inaccuracies in May 2026, while responding to queries from NSmen and checking the accuracy of their records.
The ministry then carried out a broader review of NS tax-relief records for YA2025 and YA2026 and worked with IRAS to correct the affected tax assessments.
What taxpayers need to know
Affected taxpayers do not need to take action immediately.
IRAS is revising the affected Notices of Assessment (NOAs), with revised notices expected to be issued by September 2026. The revised documents will state whether additional tax is payable or whether the taxpayer is entitled to a refund.
For taxpayers paying their income tax through GIRO instalments, any additional amount due will be adjusted automatically.
Those who are not on GIRO will need to make payment by the deadline stated on their revised NOA.
If a taxpayer is entitled to a refund, IRAS said the refund will be processed automatically.
Why NSman tax relief matters
NSman Relief is a tax benefit intended to recognise contributions to Singapore’s National Service system. IRAS states that eligible operationally ready NSmen automatically receive the relief based on records supplied by MINDEF, the Singapore Police Force or Singapore Civil Defence Force.
For YA2026, the relevant work year is April 1, 2025, to March 31, 2026. For general-population NSmen, the self-relief amount is S$1,500 if no NS activities were performed during the preceding work year and S$3,000 if NS activities were performed. Eligible NS key command and staff appointment holders receive S$3,500 or S$5,000 respectively.
Eligible NSman wives and parents can also receive S$750 in NSman Wife or NSman Parent Relief, subject to the relevant conditions.
MINDEF said it has already rectified the errors and that affected NSmen have been directly notified. The ministry and IRAS also said they will continue working together to ensure NSmen receive the correct tax relief in recognition of their national-service contributions.
The development was independently reported by CNA and The Straits Times, which confirmed the 15,000-taxpayer figure, the S$930,000 recovery, S$995,000 in refunds and the expected range of individual adjustments.
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