On 3 September 2026, the Ministry of Defence (MINDEF) and IRAS issued a joint clarification regarding the correction of National Serviceman (NSman) tax relief records. The clarification addresses errors in the submission of NSman relief claims by employers for Year of Assessment 2025 and prior years. Specifically, some employers had incorrectly reported NSman relief amounts due to system errors or misinterpretation of eligibility criteria. IRAS has urged affected employers to review their payroll records and submit amended returns where necessary. The statement also outlines the process for employers to correct errors via the myTax Portal and confirms that no penalties will be imposed for voluntary corrections made by 31 December 2026.
Key Takeaways
- Employer Obligations: Employers must verify the accuracy of NSman relief claims submitted for past years. Common errors include claiming relief for non-qualifying employees or incorrect relief amounts.
- Correction Process: Employers can file amendments through the myTax Portal’s “Object/Amend” function. IRAS has provided a step-by-step guide and a dedicated hotline for assistance.
- Penalty Waiver: Voluntary corrections made before 31 December 2026 will not attract penalties. However, IRAS reserves the right to audit and impose penalties for non-compliance after the deadline.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement