MINDEF-IRAS Clarification on Correction of NSman Tax Relief Records

The Singapore Ministry of Defence (MINDEF) has worked with the Inland Revenue Authority of Singapore (IRAS) to rectify incorrect NSman tax relief amounts that were granted to approximately 15,000 taxpayers, comprising NSmen as well as eligible parents and spouses, across the Income Tax Years of Assessment (YA) 2025 and 2026.

The incorrect tax reliefs arose from an error in MINDEF’s system that generated incorrect NS activity records, which were then used to calculate tax reliefs for the affected NSmen. MINDEF identified the inaccuracies in May 2026 while reviewing queries from NSmen and checking the accuracy of their records. MINDEF subsequently conducted a thorough review of all NS tax relief records for YA 2025 and 2026, and has worked with IRAS to ensure that the correct relief amounts are reflected in the affected taxpayers' assessments.

Of the 15,000 affected taxpayers, approximately 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. The vast majority of affected taxpayers 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.

MINDEF has rectified the errors and all affected NSmen have been directly notified. IRAS is in the process of revising the affected Notices of Assessment (NOAs), which will be issued by September 2026 and will reflect any additional tax payable or refunds, where applicable. Affected taxpayers do not need to take any action before receiving their revised NOA. Where revised assessments result in additional tax payable, taxpayers on GIRO instalment plans will have their instalment plans adjusted automatically. For the minority who are not on GIRO instalment plans, they should make payment by the due date stated in their revised NOA. Refunds, if any, will be made automatically.

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