Regulations on repayment of advance to the land development funds in Vietnam under Decree 104/2024

The content mentioned in Decree 104/2024/ND-CP stipulates about the land development funds in Vietnam (which comes into force in Vietnam from August 1, 2024).

Regulations on repayment of advance to the land development funds in Vietnam

According to Article 18 of Decree 104/2024/ND-CP, the regulations on repayment of advance to the land development funds are as follows:

(1) Repayment of advance from the project funds approved by the competent authority:

- Organizations receiving advances in accordance with Clause 1, Article 14 of Decree 104/2024/ND-CP shall prepare the dossier requesting the repayment of advance to the land development funds and send it to the State Treasury (where the organization has an account). The application includes:

Request for repayment of advance to the land development funds (stating the amount advanced from the land development funds yet to be repaid, the advance period): 02 original copies;

Withdrawal voucher according to the form in the annex issued together with Decree 104/2024/ND-CP: 02 original copies, and for cases where the dossier is sent through the State Treasury’s public service information portal, the dossier components must be digitally signed following regulations;

Decision on advance from the land development funds by the competent authority prescribed in Clause 1, Article 16 of Decree 104/2024/ND-CP: 01 copy;

Annual project capital allocation decision (including the amount for repayment of advance to the Fund): 01 copy;

Decision on repayment of advance to the land development funds by the competent authority approving the investment project: 01 original copy.

- No later than 03 working days, from the date of receiving the complete dossier as specified in point (1.a), the State Treasury shall control the legality of the dossier submitted by the organization; if ensuring conformity, the State Treasury shall transfer the money to the land development funds; if not conformable, the State Treasury shall refuse to transfer the money.

Other contents regarding transaction procedures at the State Treasury shall comply with the Government of Vietnam’s regulations on administrative procedures in the State Treasury sector.

- The finalization of completed projects shall follow the legal regulations on finalizing projects using public investment funds.

(2) Repayment of advance in other cases (not falling under Clause (1)):

- Based on the amount yet to be repaid to the land development funds (including any amounts carried over from previous periods if any), the advance period, and the plan for repayment to the Fund, the organization receiving advances according to Clause 1, Article 14 of Decree 104/2024/ND-CP shall report to the local competent authority to arrange within the development investment expenditure budget of the corresponding level to repay the advance to the Fund.

- The source for repayment of advance to the land development funds shall be arranged within other development investment expenditure budgets. Preparation, appraisal, and approval of the budget estimates shall comply with the legal regulations on state budget.

- Based on the approved budget estimates, the organization receiving advancement shall prepare the dossier requesting repayment of advance to the land development funds and send it to the State Treasury. The dossier includes:

Request for repayment of advance (stating the amount advanced from the land development funds yet to be repaid, the advance period): 02 original copies;

Withdrawal voucher according to the form in the annex issued together with Decree 104/2024/ND-CP: 02 original copies, and for cases where the dossier is sent through the State Treasury’s public service information portal, the dossier components must be digitally signed following regulations;

Budget allocation decision by the competent authority: 01 copy;

Decision on repayment of advance by the competent authority assigning the task: 01 original copy.

- No later than 03 working days, from the date of receiving the complete dossier as specified in point (2.c), the State Treasury shall control the legality of the dossier; if ensuring conformity, the State Treasury shall transfer the money to the land development funds; if not conformable, the State Treasury shall refuse to transfer the money.

Other contents regarding transaction procedures at the State Treasury shall comply with the Government of Vietnam’s regulations on administrative procedures in the State Treasury sector.

- The organization receiving advances shall finalize the amount repaid to the land development funds together with the annual state budget finalization.

(3) The amount stipulated in Clauses (1) and (2) will be repaid to the land development funds to continue fulfilling the advance tasks as stipulated in Decree 104/2024/ND-CP and shall not be used for other purposes.

(4) In case the advanced amount is not fully utilized (if any), it must be repaid to the land development funds within 30 days from the date of completing the usage of the advanced amount for the submitted purpose but not fully utilized.

Regulations on repayment of advance to the land development funds in Vietnam (Internet image)

Land development funds in Vietnam under Land Law 2024

Article 114 of the Land Law 2024 stipulates the land development funds in Vietnam as follows:

- The local land development funds is an off-budget state financial fund established by the provincial People's Committee to advance funds for tasks under the function of the land development organization, implement land support policies for ethnic minorities, and other tasks as prescribed by law.

- The land development funds has the responsibility to preserve and develop its capital, operating not for profit. The financial sources of the land development funds are allocated from the state budget and mobilized from other sources as prescribed by law. Advances for performing the tasks specified in Clause 1, Article 114 of the Land Law 2024 are to be repaid to the land development funds as prescribed by law.

- The provincial People's Committee is responsible for submitting to the provincial People’s Council for decision on local budget allocation to provide charter capital and repay the advance to the land development funds for tasks under the responsibility of the local budget.

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