Decree No. 79/2019/ND-CP amending Article 16 of the Decree No. 45/2014/ND-CP

DECREE

Amending Article 16 of the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, providing the collection of land use levy^[1]

Pursuant to the September 16, 2015 Law on Organization of the Government;

Pursuant to the November 29, 2013 Land Law;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending Article 16 of the Government’s Decree No. 45/2014/ND-CP of May 15, 2014, providing the collection of land use levy (below referred to as Decree No. 45/2014/ND-CP).

Article 1. To amend Article 16 of Decree No. 45/2014/ND-CP as follows:

1. Households and individuals (including people with meritorious services to the revolution; poor households; ethnic minority households and people; households and individuals registering permanent residence in commune-level geographical areas recognized as areas with socio-economic difficulties or extreme socio-economic difficulties) are allowed to owe land use levy in case they are allocated land for resettlement upon land recovery by the State in accordance with the land law.

The determination of people with meritorious services to the revolution must comply with the law on people with meritorious services.

The determination of poor households; ethnic minority households and people; or households and individuals registering permanent residence in commune-level geographical areas recognized as areas with socio-economic difficulties or extreme socio-economic difficulties must comply with regulations of the Government, Prime Minister or competent state agencies.

2. The land use levy to be owed by the households and individuals defined in Clause 1 of this Article is the difference between the payable land use levy when households and individuals are allocated resettlement land minus (-) the land compensation or support value upon land recovery by the State.

3. The households and individuals defined in Clause 1 of this Article (below referred to as households and individuals) may pay the outstanding land use levy amount in installments within 5 years from the date a competent state agency issues the decision on allocation of resettlement land and are not required to pay late-payment interests in this 5-year period.

Past 5 years from the date of issuance of the decision on allocation of resettlement land, if households or individuals fail to fully pay the outstanding land use levy amount written in the certificate of land use rights and ownership of houses and land-attached assets (below referred to as the certificate), they shall fully pay the outstanding land use levy amount and late-payment interest thereon at the rate prescribed in the law on tax administration for the period from the time of expiration of the 5-year period to the time of payment.

4. Order and procedures for acknowledging the outstanding land use levy amount of households and individuals:

a/ Households and individuals shall submit a request for acknowledging the outstanding land use levy amount and documents proving that they are entitled to owe land use levy together with a dossier of application for a certificate as prescribed by law (which must comprise a decision on allocation of resettlement land and a plan for compensation, support and resettlement approved by competent state agencies) at land registration offices or natural resources and environment agencies (below collectively referred to as offices).

b/ Offices shall review and check dossiers of households and individuals and make an information transfer slip indicating the land compensation and support amount to be received by households and individuals, send it to tax offices and relevant agencies and, at the same time, return a paper fixing a date of notification of dossier processing results to households or individuals under regulations.

c/ Based on the information transfer slip sent by offices, tax offices shall check information and issue a notice as prescribed by law and send it to households and individuals, offices and relevant agencies (if necessary) within 2 (two) working days from the date of issuing the notice. Such notice must contain:

- Total land use levy amount payable by households and individuals.

- The land use levy amount ineligible to be owed (which is the land compensation and support amount to be received by households and individuals).

- The land use levy amount eligible to be owed, which is equal to (=) The total land use levy amount payable by households and individuals minus (-) The land use levy amount ineligible to be owed (which is the land compensation and support amount to be received by households and individuals).

- Time limits for households or individuals to pay land use levy, including:

+ Time limit for paying the land use levy amount ineligible to be owed (according to the time limit prescribed in Decree No. 45/2014/ ND-CP).

+ Time limit for paying the land use levy amount eligible to be owed (within 5 years from the date a competent state agency issues the decision on allocation of resettlement land).

d/ Based on tax offices’ notice, households and individual shall pay the land use levy amount ineligible to be owed (which is the land compensation and support amount to be received by households or individuals) at the State Treasury office or a unit authorized by the State Treasury office (below referred to as the treasury office) within the prescribed time limit and submit documents provided by the treasury office to offices for grant of the certificate.

dd/ The treasury office shall collect land use levy according to tax offices’ notice and provide documents to households and individuals; at the same time, inform relevant agencies of the amount collected from households and individuals in accordance with law.

e/ Based on documents submitted by households and individuals, offices shall return the certificate to households and individuals under regulations. Such certificate must indicate the owed land use levy amount and payment time limit (within 5 years from the date a competent state agency issues the decision on allocation of resettlement land).

5. Order and procedures for payment and remission of the outstanding land use levy amount for households and individuals that are entitled to owe land use levy under Clause 3 of this Article

a/ Based on tax offices’ notice, households or individuals shall pay the outstanding land use levy amount in installments to the treasury office within 5 years from the date a competent state agency issues the decision on allocation of resettlement land, ensuring that after 5 years, the outstanding land use levy amount is fully paid. During this 5-year period, if tax offices’ notice is lost or missing, households or individuals shall come to the tax offices for reissuance of the notice.

b/ Past 5 years from the date of issuance of the decision on allocation of resettlement land, if households and individuals fail to fully pay the outstanding land use levy amount, they shall come to tax offices for the latter to re-determine the outstanding land use levy amount and late-payment interest thereon (which shall be determined for the period from the time of expiration of the 5-year period from the date of issuance of the decision on allocation of land resettlement to the time households and individuals come to tax offices) and receive tax agencies’ notice right on the working day. Such notice must indicate the outstanding land use levy amount and late-payment interest; and state that the time limit for remittance of money into the treasury is 30 days from the date written in the notice.

Past the time limit written in the tax offices’ notice, if households and individuals fail to fully pay the outstanding land use levy amount, they must have the outstanding land use levy amount and late-payment interest re-determined in accordance with the above provisions.

c/ After fully paying the outstanding land use levy amount prescribed at Points a and b of this Clause, households and individuals shall submit a dossier comprising the certificate (original) and  documents on payment of land use levy (original) at offices for remission of the outstanding land use levy written amount in the certificate. In case relevant documents are lost or missing, households and individuals shall come to the treasury office for certifying the paid land use levy.

d/ Offices shall review and check the dossier submitted by households and individuals for remission of the outstanding land use levy amount written in the certificate, and return the certificate to households or individuals right on the working day.

6. Households and individuals that are entitled to owe land use levy shall fully pay the outstanding land use levy amount and late-payment interest (if any) before transferring, donating, mortgaging, providing as guarantee or contributing as capital land use rights. In case of inheriting land use rights as prescribed by law while having not yet fully paid the outstanding land use levy amount, the heir shall continue to pay the outstanding land use levy amount in accordance with law.

Article 2. Transitional handling

1. For households and individuals that are entitled to owe land use levy as written in the certificate in accordance with the law applicable in each period but have not yet fully paid the outstanding land use levy amount till the effective date of this Decree:

a/ Households and individuals that are allowed to owe land use levy before March 1, 2016, shall continue to pay the outstanding land use levy amount according to land policies and at land prices applicable at the time of grant the certificate (or according to the amount written in the certificate which is determined in accordance with law) through February 28, 2021. This regulation does not apply to land use levy amounts already remitted by households and individuals to the state budget.

From March 1, 2021, onward, households and individuals shall pay the outstanding land use levy amount according to land policies and at land prices applicable at the time of payment.  

b/ Households and individuals that are entitled to owe land use levy from March 1, 2016, to before the effective date of this Decree, shall continue to pay the outstanding land levy amount written in the certificate which is determined under Decree No. 45/2014 /ND-CP within 5 years from the date of acknowledging the outstanding land use levy.

Past the 5-year period from the date of acknowledging the outstanding land use levy amount, households and individuals shall pay the outstanding amount according to land policies and at land prices applicable at the time of payment.

2. From the effective date of this Decree, households and individuals paying outstanding land use levy amounts ahead of schedule (5-year period) will no longer be entitled to a reduction of 2%/year of the payable land use levy amount.

3. The order and procedures for payment and remission of outstanding land use levy amounts for the cases prescribed in Clause 1 of this Article must comply with Clause 5, Article 1 of this Decree.

4. For households and individuals that are entitled to owe land use levy before the effective date of this Decree but have the owed amount acknowledged in gold or property or by other methods incompliant with law applicable at the time of acknowledgement, provincial-level People’s Committees shall direct competent agencies to re-determine the outstanding amounts in cash in accordance with law applicable in each period, and make payment and remission of outstanding land use levy under Clauses 1 and 3 of this Article.

5. Households and individuals that are granted the certificate or received the tax offices’ notice on land use levy before the effective date of this Decree but request acknowledgement of the outstanding land use levy from the effective date of this Decree, except those defined in Clause 1, Article 1 of this Decree, will not be allowed to owe land use levy.

Article 3. Effect

1. This Decree takes effect on December 10, 2019.

2. To annul Article 16 of Decree No. 45/2014/ND-CP.

Article 4. Implementation responsibility

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and land users shall implement this Decree.

2. Provincial-level People’s Committees shall direct local competent agencies to promptly review all entities that are allowed to owe land use levy in their localities but fail to complete the payment in order to notify these entities of the acknowledgement, payment and remission of outstanding land use levy in accordance with this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC