Settlement and reimbursement of enforcement costs of court judgement against commercial entities in Vietnam

Settlement and reimbursement of enforcement costs of court judgement against commercial entities in Vietnam

Pursuant to Article 7 of Circular 55/2021/TT-BTC, settlement and reimbursement of enforcement costs of court judgement against commercial entities are as follows:

1. Upon the completed execution of the enforcement decision, the enforcement decision-executing authority (or the competent enforcement authority at the same level as prescribed in Article 42 of Decree No. 44/2020/ND-CP) shall seek the enforcement decision maker’s approval of the settlement of enforcement costs. The enforcement decision-making authority shall be responsible for sending the approved statement on settlement of enforcement costs to the entity subject to enforcement (in case that entity has already paid enforcement costs).

If the approved settlement amount is lower than the amount already paid by the entity subject to enforcement, the authority issuing the enforcement decision shall refund the difference to the entity subject to enforcement. If the approved settlement amount is greater than the amount already paid by the entity subject to enforcement, the entity subject to enforcement authority shall pay the deficit.

2. In case where the advance on enforcement costs has been made as prescribed in Clause 2, Article 6 of this Circular, based on the approved statement on settlement of enforcement costs, the enforcement decision-making authority shall issue a written notice of the approved statement on settlement of enforcement costs to the entity subject to enforcement to ask them to pay enforcement costs (the written notice must clearly state the date (day, month and year) of the sanction, the amount to be paid, the address for payment in cash or the account number in case of payment by bank transfer and other necessary information).

Not later than 10 days from the date of receipt of the written notice of the approved statement on settlement of enforcement costs, the entity subject to enforcement shall be responsible for paying enforcement costs to the enforcement decision-making authority. When collecting money from the entity subject to enforcement, the enforcement decision-making authority must complete regulatory procedures for reimbursing these costs to the state budget.

3. In case the enforcement costs are collected from the proceeds from the property auction (as prescribed in Articles 32 and 33 of Decree No. 44/2020/ND-CP), after deducting the property auction costs under the provisions of the law on property auction, the enforcement decision-executing authority (or the competent enforcement authority at the same level as prescribed in Article 42 of Decree No. 44/2020/ND-CP) shall reimburse enforcement costs. In case where the entity subject to enforcement has paid enforcement costs, the enforcement decision-executing authority (or the competent enforcement authority at the same level as prescribed in Article 42 of Decree No. 44/2020/ND-CP) shall reimburse the enforcement proceeds from the property auction to the entity subject to enforcement.

4. In case where it is impossible to recover the enforcement costs because the entity subject to enforcement is bankrupt or dissolved to the extent of being out of money or property to pay the enforcement costs, the enforcement decision-executing authority shall report to the enforcement decision maker on this situation under the provisions of Clause 5 of this Article.

5. Annually, at the time of making the state budget estimate, the enforcement decision maker shall report on the use of the advance funding for enforcement, including: the amount of money that has been paid in advance, the amount of costs recovered; the amount of costs that have not been recovered yet; the amount of costs that cannot be recovered (if any); reasons for non-recovery and recommendations submitted to superior authorities and financial institutions at the same level.

The dossier for refund of costs of enforcement of administrative penalties paid in advance shall conform to the provisions of Clause 3, Article 6 of this Circular and current regulations on refund of the advanced budget.

Budgeting, compliance and finalization of enforcement costs of court judgement against commercial entities in Vietnam

Pursuant to Article 8 of Circular 55/2021/TT-BTC, budgeting, compliance and finalization of enforcement costs of court judgement against commercial entities are as follows:

1. Budgeting, compliance and finalization of annual regular expenditures by the enforcement decision-making authority shall be subject to Law on State Budget and other instructional documents. Enforcement funds shall be included in the annual budget prepared by the enforcement decision-making authority.

2. By the end of the year and upon expiry of the duration for review of the cost finalization statement in accordance with the Law on State Budget and other instructional documents, the unused budget balance will be canceled according to regulations while the advance balance of the remaining enforcement costs will be recovered by transferring it to the next year's advance within the annual budget of the enforcement decision-making authority.

Best Regards!