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Auto-Generated MUP Claim for Self-Employed NSmen – Income Tax Option


Scenario Calculations

Self-employed sole proprietor of a business, 

holding 3SG rank, attending a High-Key ICT

Period of NS Activity: 3 to 14 Oct 2022

Calendar days for NS Activity: 12 days

Total number of calendar days in Oct: 31 days

 

Service Pay (SP) (Based on Calendar Days)

Monthly SP of 3SG: $990

SP for NS Activity period: $990 x (12/31) = $383.23

If trade income for year of ORNS activity is not available, a provisional payment will be made based on your latest available Notice of Assessment (NOA).

NOA 2022 (income earned in 2021) = $24,000

Civilian Income Loss (Based on Calendar Days)

= ($24,000/365) x 12 days = $789.04

Make-Up Pay = Civilian Income Loss – SP

Provisional MUP = $789.04 – $383.23 = $405.81

When NOA 2023 (income earned in 2022 which is the year of ORNS activity) is available, adjustments will be made to the provisional MUP paid.

If NOA 2023 is more than NOA 2022 used for provisional MUP

NOA 2023 (income earned in 2022) = $30,000

Adjusted Civilian Income Loss (Based on Calendar Days)

= [$30,000 / (365 – 12^)] x 12 days = $1,019.83

^12 days is deducted because NSman is assumed to be unproductive due to ORNS activity.

Adjustment to be paid = (Adjusted Civilian Income Loss – SP) – Provisional MUP

Adjustment to be paid = ($1019.83 – $383.23) –  $405.81 = $230.79

If NOA 2023 is less than NOA 2022 used for provisional MUP

NOA 2023 (income earned in 2022) = $20,000

Adjusted Civilian Income Loss (days in a year)

= [$20,000 / (365 – 12^)] x 12 days = $679.89

^12 days is deducted because NSman is assumed to be unproductive due to ORNS activity.

Adjustment to be recovered = Provisional MUP – (Adjusted income loss – SP) 

Adjustment to be recovered = $405.81 – ($679.89 – $383.23) = $109.15