Receive inheritance of a red book with recorded land levy debt; is it necessary to pay the debt? How to resolve a red book with recorded land levy debt?
Inheritance of a Red Book with Outstanding Land Levy: Is Payment Required?
Based on Clause 3, Article 12 of Circular 76/2014/TT-BTC regarding the inheritance of a Red Book with an outstanding land levy, the regulations are outlined as follows:
Recording Debt and Paying Land Levy Debt
Households and individuals allowed to change the land use purpose; those granted a Certificate of land use rights who are obligated to pay a land levy according to the provisions of this Decree, and households and individuals resettled by the State who encounter financial difficulties and wish to record the debt, are permitted to record the payable land levy debt according to the regulations in Article 16 of Decree No. 45/2014/ND-CP. Specific guidance is provided in certain contents of this Article as follows:
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3. When households or individuals with recorded land levy debt transfer their rights, they must pay the outstanding land levy. In cases where they are permitted to transfer part of the parcel, based on the approved parcel separation documents, the tax authority determines the corresponding land levy for the transferred area. In instances where inheriting land use rights from a deceased estate where the land levy has not been paid, the heir is responsible for continuing the payment as regulated by inheritance law.
Thus, when inheriting a Red Book with an outstanding land levy, the heir has the responsibility to continue paying this land levy debt in accordance with inheritance laws.
Inheritance of a Red Book with Outstanding Land Levy - Is Payment Required? What to do with a Red Book with Outstanding Land Levy?
How to Handle a Red Book with an Outstanding Land Levy?
Based on Clause 2, Article 12 of Circular 76/2014/TT-BTC regarding the payment of land levy debt recorded on a Red Book, the procedures are as follows:
Recording Debt and Paying Land Levy Debt
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2. Payment of land levy debt:
a) When paying the land levy debt, households or individuals must declare the payment at the tax office using the form prescribed in Appendix No. 03 attached to this Circular. The tax office will process the payment based on the debt tracking record for households or individuals.
If, after 5 years from the debt recording date on the Certificate, the household or individual has not yet paid the debt or has not fully paid during the 5-year period, the outstanding land levy for each area type within and beyond the limit will be recalculated as a percentage (%) of the incomplete financial obligation, and the household or individual will have to pay the land levy for this area as follows:
The land levy to be paid equals (=) outstanding land levy divided (:) by the total land levy calculated at the land price at the time of Certificate issuance multiplied (x) by the land levy recalculated at the land price at the time of debt payment.
b) After the land user completes the debt payment, based on the debt tracking record, the tax office confirms the payment according to the form in Appendix No. 04 attached to this Circular. The user then submits this confirmation to the Land Registration Office (or the Department of Natural Resources and Environment) to clear the land levy debt on the Certificate.
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In cases where the Red Book has an outstanding land levy, the debt must be settled at the tax office according to the above guidance.
Upon completing the payment, the tax office will issue a certificate of tax obligation fulfillment. The user then submits this certificate to the Land Registration Office to clear the land levy debt from the Certificate.
Handling Outstanding Registration Fees with Land Levy Debt
Based on Clause 1, Article 9 of Decree 10/2022/ND-CP regarding the recording of registration fee debt on a Red Book, the conditions are as follows:
Recording Registration Fee Debt
1. Recording registration fee debt for land and houses associated with land of households and individuals eligible for land levy debt recording as regulated by the land levy law. When paying the registration fee debt, households or individuals must pay the fee calculated at the house and land prices regulated by the People's Committee of the province or centrally-run city at the time of registration fee declaration.
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If an individual subject to registration fee debt recording is also subject to land levy debt recording, the registration fee debt will be paid simultaneously with the land levy debt.
Households and individuals pay the registration fee debt calculated based on the house and land prices set by the provincial or centrally-run city People's Committee at the time of the registration fee declaration.
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