15,000 Singapore Taxpayers Hit by NSman Relief Error — Some May Have to Pay More, Others Could Get Money Back

SINGAPORE — About 15,000 taxpayers in Singapore have been affected by incorrect National Service (NS) tax relief amounts after a system error generated inaccurate NS activity records, according to the Ministry of Defence (MINDEF) and Inland Revenue Authority of Singapore (IRAS).

The affected group includes NSmen, as well as eligible spouses and parents, with the incorrect relief amounts appearing in Years of Assessment (YA) 2025 and 2026.

But the impact will not be the same for everyone.

Of the approximately 15,000 affected taxpayers, around 7,000 will see their tax bills increase, while about 8,000 will receive reductions.

Overall, approximately S$930,000 will be recovered, while around S$995,000 will be refunded to affected taxpayers.

How much could taxpayers be affected?

For the vast majority, the adjustment will be relatively small — less than S$200 in either direction.

However, depending on an individual's NSman relief entitlement and income-tax bracket, the adjustment could range from under S$10 to about S$900.

That means some taxpayers who had previously received too much relief will have additional tax to pay, while those who received too little relief could see money returned to them.

What caused the mistake?

According to MINDEF and IRAS, the problem originated from an error in MINDEF's system that generated incorrect NS activity records.

Those records were subsequently used to determine NSman tax relief amounts.

MINDEF said it discovered the inaccuracies in May 2026, after reviewing queries from NSmen and checking the accuracy of their records.

The ministry then conducted a broader review of NS tax-relief records covering YA 2025 and YA 2026 and worked with IRAS to correct the affected tax assessments.

Taxpayers do not need to rush to amend anything

For people affected by the error, there is an important point: no immediate action is required before the revised tax assessment arrives.

MINDEF has said affected NSmen have been directly notified, while IRAS is revising the affected Notices of Assessment (NOAs).

The revised notices are expected to be issued by September 2026, showing any additional tax payable or refund due.

For taxpayers who owe additional tax:

• Those on GIRO instalment plans will have their instalments adjusted automatically.
• Those who are not on GIRO should make payment by the deadline stated on their revised notice.

For taxpayers entitled to refunds, the money will be refunded automatically.

Why NSman tax relief matters

NSman tax relief is intended to recognise the contributions made through National Service.

IRAS currently states that eligible operationally ready NSmen receive NSman Self Relief based on their circumstances and NS activity. For YA 2026, a general-population NSman who performed NS activities in the preceding work year can receive S$3,000, compared with S$1,500 if no NS activities were performed. Eligible NS key command and staff appointment holders can receive S$5,000 or S$3,500, respectively.

There are also separate NSman Wife Relief and NSman Parent Relief, each generally amounting to S$750, subject to eligibility requirements. These are automatically granted by IRAS based on information supplied by the relevant authorities.

This automatic system is why accurate NS activity records are particularly important: taxpayers generally do not manually claim NSman Self Relief themselves; IRAS calculates the relief using records supplied by the relevant authorities.

What taxpayers should do now

If you are an affected NSman, spouse or parent, the simplest step is to wait for the revised Notice of Assessment from IRAS.

Once received, check the revised figures carefully, including the NSman relief amount and the resulting tax payable or refund.

IRAS also generally advises taxpayers to review their tax bills and ensure that income and relief information is accurate.

The authorities have stressed that the errors have been rectified and that MINDEF and IRAS will continue working together to ensure eligible NSmen receive the correct tax relief.

For thousands of Singapore taxpayers, however, the next tax notice could look noticeably different from the one they originally received.

WWC ONE MEDIA MJE