New regulations on deferred repayment of land levy upon resettlement in Vietnam

New regulations on deferred repayment of land levy upon resettlement in Vietnam (Image from Internet)

On July 15, 2024, Hanoi issued Decree 88/2024/ND-CP on recompense, support, and resettlement upon land expropriation by the State in Vietnam.

1. New regulations on deferred repayment of land levy upon resettlement in Vietnam

According to Article 26 of Decree 88/2024/ND-CP, the deferred repayment of land levy upon resettlement in Vietnam is as follows:

- The subjects eligible for deferred repayment of land levy as stipulated in Clause 3, Article 111 of the Land Law 2024 are those arranged for resettlement whose compensation for the land is less than the land levy payable upon resettlement, if they wish to record the debt of the land levy and commit to handing over the site as scheduled.

- The land price for calculating the debt of the land levy is the price determined according to the land price table at the time of approving the compensation, support, and resettlement plan.

When paying off the land levy debt, the land user repays according to the debt amount recorded on the land use right certificate.

- The debt recording level for households and individuals as stipulated in Clause 1, Article 26 of Decree 88/2024/ND-CP is determined by the difference between the land levy payable when the household or individual is allocated resettlement land minus (-) the land compensation value received.

In case of recipients eligible for resettlement support, if the land levy payable exceeds the minimum resettlement value, the excess land levy is recorded as debt.

- Households and individuals eligible for deferred repayment of land levy as stipulated in Clause 1, Article 26 of Decree 88/2024/ND-CP must pay off any outstanding land levy debt before transferring, assigning, donating the land use rights, mortgaging, or contributing capital using the land use rights. In cases of inheritance or donation of land use rights according to legal provisions, if the land levy debt is not fully paid, the recipient of the inheritance or donation certified by the commune-level People's Committee as belonging to a poor or near-poor household will continue to have the debt recorded.

- For the procedures of debt recording, payment, and debt cancellation of land levy for households, and individuals eligible for debt recording as stipulated in Clause 1, Article 26 of Decree 88/2024/ND-CP, the relevant laws on land levy collection and land rent apply.

2. 10 Key points regarding recompense, support, and resettlement upon land expropriation by the State in Vietnam

According to Clause 1, Article 3 of Decree 88/2024/ND-CP, the key points in the recompense, support, and resettlement upon land expropriation by the State in Vietnam include:

- The total area of land recovered (including detailed plans as per Clause 2, Article 3 of Decree 88/2024/ND-CP), the area of each type of land recovered;

- The total number of people with land recovered;

- The plan for vocational training, job switching, and job seeking (if any);

- The resettlement arrangement plan: households and individuals arranged for resettlement, resettlement areas, resettlement locations, forms of resettlement (land, housing) (if any);

- The plan for relocating graves within the recovered land area (if any);

- The plan for relocating infrastructure projects within the recovered land area (if any);

- Compensation, support, resettlement costs including: compensation money, support, resettlement upon land expropriation by the State; expenses ensuring the organization of implementing compensation, support, resettlement, and other expenses.

- The implementation timeline of the compensation, support, resettlement plan;

- Detailed plans for compensation, support, resettlement for each person with land recovered, property owners;

- Other contents related to compensation, support, resettlement (if any).

Refer to Decree 88/2024/ND-CP which comes into force in Vietnam from August 1, 2024.

Decree 47/2014/ND-CP and Decree 06/2020/ND-CP will cease to be in effect in Vietnam from the effective date of Decree 88/2024/ND-CP.

Vo Tan Dai

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