Around 15,000 taxpayers affected by incorrect NSman tax relief amounts; about 7,000 face higher tax bills.
https://cna.asia/4csRnsZ
Full Details: Incorrect NSman Tax Relief — MINDEF / IRAS Joint Statement (3 Sep 2026)
📌 What Happened
- ~15,000 taxpayers affected — comprising NSmen, and eligible Singaporean parents/spouses of NSmen
- Affected tax years: Year of Assessment 2025 and 2026
- Root cause: system error within MINDEF that generated incorrect National Service activity records. These records are sent to IRAS and used to calculate NSman tax relief automatically
- MINDEF discovered the issue in May 2026 while responding to NSmen queries, then conducted a full review of all affected records
📊 Impact Breakdown
- ~7,000 taxpayers → will owe more tax (upward adjustment)
- ~8,000 taxpayers → will receive a refund (downward adjustment)
- Total to be recovered: S$930,000; Total to be refunded: S$995,000
- Most adjustments are under S$200; range spans roughly under S$10 to S$900, depending on relief entitlement and income tax bracket
💰 How NSman Tax Relief Works
- NSman self relief: S$1,500 base, plus another S$1,500 if the NSman performed Operationally Ready NS activities (e.g. in-camp training) in the work year
- Eligible Singaporean parents/spouses: S$750 per year relief
- Each taxpayer can receive only one type of NSman relief
📋 Next Steps & Action Required
- MINDEF has fixed the system error and notified all affected individuals directly
- IRAS will issue revised Notices of Assessment by September 2026 — these will show any extra tax payable or refund due
- No action needed until you receive the revised notice
- If you owe additional tax:
- On GIRO instalment plans: plans are updated automatically
- Not on GIRO: pay by the due date stated on your revised notice
- Refunds are processed automatically
Source: MINDEF & IRAS joint statement, 3 September 2026 | Full story: CNA
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