Cost of Land Clearance for Business: Is it Compensated When Land is Reclaimed?

According to Clause 2, Article 3 of Decree 47/2014/ND-CP, the remaining investment costs in land include all or part of the following costs:

- Land leveling costs;

- Costs for soil improvement to increase soil fertility, acid washing, salinity leaching, erosion and infestation prevention for land used for agricultural production purposes;

- Costs for reinforcing the load-bearing capacity and vibration resistance, subsidence prevention for land used as production and business grounds;

- Other related costs invested in land suitable for its usage purposes.

Thus, the costs you incur for land leveling for business purposes will be compensated by the state when the land is reclaimed (in the case of compensation for investment costs on land).

Note: The aforementioned investment costs on land will be compensated when the following conditions are met:

- There are records and documents proving investment in the land. In the case where the remaining investment costs in land do not have records or documents proving them, the Provincial People's Committee, based on the actual situation in the locality, will stipulate the determination of the remaining investment costs in land;

- The investment costs in land do not originate from the state budget.

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