A technical processing error within the Ministry of Defence (MINDEF) system resulted in inaccurate National Service (NSman) tax relief amounts being granted to approximately 15,000 taxpayers.
The joint statement released on September 3, 2026, by MINDEF and the Inland Revenue Authority of Singapore (IRAS) confirmed that the issue affects calculations across the 2025 and 2026 Years of Assessment (YA). The error impacts operationally ready servicemen, as well as parents and spouses who qualify for tax relief based on servicemen’s contributions.
The root cause involved faulty internal software generating inaccurate records of NS activities, which were subsequently fed to IRAS to compute annual individual income tax relief quotas. MINDEF uncovered the discrepancies in May 2026 while checking records following queries submitted by servicemen.
Out of the 15,000 affected individuals, roughly 8,000 will receive tax refunds because their original tax assessments were set too high. Together, these refunds total approximately S$995,000. Conversely, around 7,000 taxpayers were undercharged and will collectively owe S$930,000 in recovered taxes.
For the vast majority of those affected, the financial correction remains relatively minor, staying below S$200 in either direction. However, depending on specific income tax brackets and total relief entitlements, individual adjustments range from under S$10 to nearly S$900.
MINDEF has confirmed that all errors in its internal databases have been resolved, with affected servicemen being notified directly. Additional preventive measures have been implemented to protect data integrity moving forward.
Taxpayers do not need to submit manual requests or file revised tax returns. IRAS is progressively issuing revised Notices of Assessment (NOAs) throughout September 2026. For taxpayers paying via GIRO, monthly installment schedules will automatically recalibrate to reflect the updated balance. Those due for refunds will receive their payouts directly through established electronic bank transfer channels.
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