Vietnam: New procedures for removal of land use fee debts for households and/or individuals

According to Decree No. 79/2019/NĐ-CP of Vietnam’s Government, households and individuals may be granted permission for deferred repayment of land use fees if they are allocated resettlement land after the State’s land expropriation in accordance with law on land and may repay their outstanding debts by installments within 5 years of receipt of decisions on allocation of resettlement land from competent regulatory authorities, and may be granted exemption from the requirement for payment of any late payment fee incurred within this period.

Specifically, documentation requirements and procedures for repayment and removal of land use fee debts that households and/or individuals are permitted to defer paying shall be subject to Clause 5 Article 1 of Decree No. 79/2019/NĐ-CP amending Article 16 of Decree No. 45/2014/NĐ-CP of Vietnam’s Government, specifically as follows:

- Based on Notices from tax authorities, households and/or individuals will pay land use fee debts in installments at treasuries within 5 years of receipt of decisions on resettlement land allocation from competent regulatory authorities to the extent that they discharge all payment obligations within the 5-year maturity period. In cases where Notices are lost or go missing within this 5-year period, they must contact tax authorities to be reissued other Notices.

- After 5 years of receipt of decisions on resettlement land allocation, if they have not yet paid all debts, they will contact tax authorities to request them to inform the remaining amounts of outstanding debt and the amounts of late payment charge calculated based on the aforesaid remaining amounts (determined within the period from the end date of the 5-year maturity that starts from the date of receipt of decisions on resettlement land allocation from competent regulatory authorities to the date on which these households and/or individuals contact tax authorities to request them to inform the remaining amounts of outstanding debt), and will receive Notices within the same working day. Each Notice must show the following information: The outstanding amount of land use fee debt, the amount of late payment charge; time limit for payment to treasuries which is 30 days from the date specified in the Notice. After this 30-day time limit, if households and/or individuals have not yet paid their debts due, they will have to contact tax authorities to inform the outstanding amounts of land use fee debts and late payment charges as prescribed above.

- After discharging all debt repayment obligations as provided in point a and b of this clause, households and/or individuals must submit the following documents: Certificates (original copies), payment receipts (original copies) at Divisions to remove the debt amounts specified in these Certificates. In case of lost or missing receipts, they must contact treasuries to receive their certification of the paid amounts. Divisions have to review and verify documents that households and/or individuals have submitted to remove debts shown in Certificates and return Certificates within the same working day.

Note: Households and/or individuals obtaining permission for deferred repayment of land use fee debts must pay the outstanding amount of land use fee debts and late payment charges (if any) in full before transferring, giving, donating, mortgaging land use rights, providing these rights as pledges or capital contributions. If an heir inherits land use rights in accordance with laws, but land use fee debts have not yet been paid in full, he/she shall have the burden of continuing to pay the remaining amount of outstanding debts in accordance with laws.

View other provisions at Decree No. 79/2019/NĐ-CP of Vietnam’s Government, effective from December 10, 2019.

Thu Ba

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