SINGAPORE – An error in the Ministry of Defence’s system caused about 15,000 taxpayers – comprising operationally ready national servicemen (NSmen), as well as eligible parents and spouses – to be affected by incorrect NSman tax-relief amounts.
Of the 15,000 affected taxpayers, about 7,000 of them will see an increase in their tax bill, while around 8,000 of them will have a decrease, said MINDEF and the Inland Revenue Authority of Singapore (IRAS) in a joint statement on Sept 3.
Most of the affected taxpayers will see either an upward or downward adjustment of less than $200, said the two authorities. The adjustment may range from under $10 to about $900, depending on an individual’s relief entitlement and income tax bracket.
In total, about $930,000 will be recovered and about $995,000 will be refunded, MINDEF and IRAS said.
The incorrect tax relief amounts were across the tax years of assessment 2025 and 2026, and do not affect full-time national servicemen.
The inaccuracy arose when an error in MINDEF’s system generated incorrect NS activity records, which were then used to calculate tax reliefs for the affected NSmen, the statement said.
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