About 15,000 taxpayers affected by incorrect tax relief amounts due to MINDEF system error

About 15,000 taxpayers, comprising operationally ready national servicemen (NSmen) as well as eligible parents and spouses, have been affected by wrong NSman tax relief amounts.

This is due to an error in the Ministry of Defence's (MINDEF) system that generated incorrect national service activity records, which were then used to calculate tax reliefs for affected NSmen, MINDEF and the Inland Revenue Authority of Singapore (IRAS) in a joint statement on Thursday (Sept 3).

The inaccuracies were uncovered in May 2026 while MINDEF was reviewing queries from NSmen and checking the accuracy of their records.

"MINDEF subsequently conducted a thorough review of all NS tax relief records for Year of Assessment (YA) 2025 and 2026, and has worked with IRAS to ensure that the correct relief amounts are reflected in the affected taxpayers' assessments," the ministry and IRAS said.

All errors have been rectified by MINDEF, they added.

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. 

In total, about $930,000 will be recovered and about $995,000 will be refunded, according to the agencies, adding the most of those affected will see either an upward or downward adjustment of less than $200.

"Depending on an individual's relief entitlement and income tax bracket, the upward or downward adjustment may range from under $10 to about $900."

The revised notices of assessments (NOAs) will be issued by September 2026 and will reflect any additional tax payable or refunds, where applicable.

Those affected do not need to take any action before receiving their revised NOA, they said.

They added that revised assessments resulting in additional tax payable, will be automatically adjusted for those on GIRO instalment plans.

Similarly, refunds will be made automatically.

For the minority who did not opt for GIRO instalment plans, they will have to make payment by the due date stated in their revised NOAs.

MINDEF and IRAS said they will continue to work closely to ensure that all NSmen receive the correct tax reliefs in recognition of their contributions to NS.

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