Conditions on judgment execution obligation exemption or reduction regarding state budget remittances in Vietnam

Conditions on judgment execution obligation exemption or reduction regarding state budget remittances in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions on judgment execution obligation exemption or reduction regarding state budget remittances in Vietnam

According to Article 61 of the Law on Enforcement of Civil Judgments 2008 (amended 2014), conditions for exemption and reduction of judgment enforcement obligations for state budget revenues are as follows:

(1) A judgment debtor may be considered for exemption from the judgment execution obligation if fully meeting the following conditions:

- Having no assets for judgment enforcement or having assets which are not allowed to be handled for judgment enforcement as prescribed by law, or having no income or having low incomes which can only ensure the minimum living standards for him/her and persons that he/she is responsible for nurturing;

- Past the time limit of 5 years after the issuance of judgment enforcement decisions regarding state budget remittances valued at under VND 2,000,000; or 10 years after the issuance of judgment enforcement decisions regarding state budget remittances valued at between VND 2,000,000 and under VND 5,000,000.

(2) Judgment debtors who have partially paid state budget remittances may be considered for exemption from the remaining part of their obligation if fully meeting the following conditions:

- Falling into the case specified at Point a, Clause 1 of Article 61 of the Law on Enforcement of Civil Judgments 2008 (amended 2014);

- Past the time limit of 5 years after the issuance of judgment enforcement decisions in case the remaining obligation part is valued at under VND 5,000,000; or 10 years after the issuance of judgment enforcement decisions in case the remaining obligation part valued at between VND 5,000,000 and under VND 10,000,000.

(3) Judgment debtors who have partially paid state budget remittances and falling into the case specified at Point a, Clause 1 of Article 61 of the Law on Enforcement of Civil Judgments 2008 (amended 2014) shall be considered for reduction of part of their obligations if meeting one of the following conditions:

- Past the time limit of 5 years after the issuance of judgment enforcement decisions in case the remaining obligation part is valued at between VND 10,000,000 and VND 100,000,000, each reduction must not exceed a quarter of the remaining obligation part.

- Past the time limit of 10 years after the issuance of judgment enforcement decisions in case the remaining obligation part is valued at over VND 100,000,000, each reduction must not exceed one fifth of the remaining part and VND 50,000,000.

(4) Judgment debtors who proactively paid part of court fees and fines, but suffer a prolonged difficulty-hit economic condition due to natural disasters, fire, accidents or illness which renders them unable to execute their remaining obligation part, or have accomplished feats, may be considered for exemption from execution of their remaining obligation part.

(5) Judgment debtors specified in Clauses 1, 2 and 3 of Article 61 of the Law on Enforcement of Civil Judgments 2008 (amended 2014) will be considered for judgment execution exemption or reduction for each judgment or decision only once a year.

The first-time judgment enforcement decision serves as a ground for determining the time limit for exemption from, or reduction of, judgment enforcement.

(6) The Ministry of Justice shall assume the prime responsibility for, and cooperate with the Supreme People’s Court and the Supreme People’s Procuracy in, guiding Article 61 of the Law on Enforcement of Civil Judgments 2008 (amended 2014).

2. Dossiers of request for consideration of judgment execution obligation exemption or reduction regarding state budget remittances in Vietnam

According to Article 62 of the Law on Enforcement of Civil Judgments 2008 (amended 2014), civil judgment enforcement agencies shall compile dossiers to request competent courts to consider judgment execution obligation exemption or reduction. Such a dossier comprises the following:

- A written request for consideration of judgment execution obligation exemption or reduction, made by the head of the civil judgment enforcement agency or the chairman of the procuracy in case of request for consideration of fine exemption or reduction;

- The court judgment or ruling or judgment enforcement decision of the civil judgment enforcement agency;

- A written record of verification of judgment execution conditions of the judgment debtor, made within 3 months before filing the request for exemption or reduction consideration;

- Other document proving the eligibility of the judgment debtor for consideration of judgment execution obligation exemption or reduction, if any;

- Written opinions of the procuracy at the same level in case the civil judgment enforcement agency requests the consideration of the judgment execution obligation exemption or reduction.

3. Competence and procedures for considering judgment execution obligation exemption or reduction regarding state budget remittances in Vietnam

According to Article 63 of the Law on Enforcement of Civil Judgments 2008 (amended 2014), the competence and procedures for considering judgment execution obligation exemption or reduction regarding state budget remittances are as follows:

- Consideration of judgment execution obligation exemption or reduction regarding state budget remittances falls under the competence of people’s courts of districts, towns or provincial cities, and zone-level military tribunals (below collectively referred to as people’s courts of urban and rural districts, towns, provincial cities and the equivalent) in localities where civil judgment enforcement agencies organizing the judgment enforcement are located.

- Within 2 working days after receiving dossiers of request for judgment execution obligation exemption or reduction, courts shall accept these dossiers for handling.

Within 20 days after accepting dossiers, judges assigned to handle cases shall hold a hearing to consider judgment execution obligation exemption or reduction.

- A hearing to consider judgment execution obligation exemption or reduction shall be chaired by a judge and participated by representatives of the procuracy at the same level and the civil judgment enforcement agency that has requested exemption or reduction consideration.

In considering judgment execution obligation exemption or reduction, the representative of the civil judgment enforcement agency shall briefly present the dossier of request for exemption or reduction consideration, while the representative of the procuracy shall give opinions on the dossier.

After examining the dossier and considering opinions of the representatives of the procuracy and the civil judgment enforcement agency, the judge shall issue a ruling on acceptance, partial acceptance or non-acceptance of the request.

- Within 5 working days after issuing a ruling on judgment execution decision obligation exemption or reduction, the court shall send it to the person eligible for consideration of judgment execution obligation exemption or reduction, the procuracy at the same level, the immediately higher-level procuracy, the civil judgment enforcement agency that has requested consideration of judgment execution obligation exemption or reduction, the custody facility or detention camp where the person eligible for consideration of judgment execution obligation exemption or reduction regarding state budget remittances is serving their imprisonment sentence.

Ho Quoc Tuan

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