How long does it take for households to be paid land use fees when they are allocated resettlement land after the State’s land expropriation in Vietnam?

How long does it take for households to be paid land use fees when they are allocated resettlement land after the State’s land expropriation in Vietnam?

In Clause 1, Article 1 of Decree 79/2019/ND-CP stipulating the collection of land use levy as follows:

1. Households and individuals (including persons rendering meritorious revolutionary services; poor households; ethnic minority households and individuals; households and individuals obtaining registration for their permanent residence at communes that are recognized as difficult or extremely difficult socio-economic areas) 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.

Persons rendering meritorious revolutionary services shall be identified under law on persons rendering meritorious services.

Poor household; ethnic minority households and individuals, or those obtaining registration for their permanent residence at communes which are recognized as difficult or extremely difficult socio-economic areas shall be identified, subject to the regulations of the Government, the Prime Minister or competent regulatory authorities.

In Clause 3, Article 1 of Decree 79/2019/ND-CP stipulates as follows:

3. Households and/or individuals referred to in clause 1 of this Article (hereinafter referred to households and/or individuals) 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.

After 5 years of receipt of resettlement land allocation decisions from competent regulatory authorities, if these households and/or individuals have not yet fully paid all debts accrued as specified in Certificates of rights to use land and own house and other associated property (hereinafter referred to Certificate), they shall be obliged to pay the remaining outstanding balance of land use fees owed and late payment fees charged on such amounts according to permissible levels prescribed in law on tax administration as from the end date of the 5-year period of permission for deferred repayment to the date of debt repayment.

Thus, if your household is a poor households; ethnic minority households and individuals; households and individuals obtaining registration for their permanent residence at communes that are recognized as difficult or extremely difficult socio-economic areas, you may be granted permission for deferred repayment of land use fees andrepay your outstanding debts by installments within 5 years of receipt of decisions on allocation of resettlement land from competent regulatory authorities in Vietnam.

Can households that pay resettlement land use levy before the due date be deducted from land use fees payable in Vietnam?

In Clause 2, Article 2 of Decree 79/2019/ND-CP stipulating the collection of land use levy as follows:

2. If households and/or individuals pay debts before the 5-year maturity period from the effective date of this Decree, they shall not be granted 2% of subsidies per year offset against land use fees payable.

According to this Article, in case your household pays the land use levy before the debited time limit, it will not be deducted from land use fees payable as prescribed by law in Vietnam.

What are documentation requirements and procedures for repayment and removal of land use fee debts for households allocated resettlement land by the State in Vietnam?

In Clause 5, Article 1 of Decree 79/2019/ND-CP stipulating documentation requirements and procedures for repayment and removal of land use fee debts for households allocated resettlement land by the State as follows:

5. 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 3 of this Article.

a) 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 case where Notices are lost or go missing within this 5-year period, they must contact tax authorities to be reissued other Notices.

b) 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.

c) 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.

d) 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.

The above are legal provisions on documentation requirements and procedures for repayment and removal of land use fee debts for households allocated resettlement land by the State in Vietnam.

Best Regards!