On 30 December 2010, the Vietnamese Government issued Decree No. 120/2010/ND-CP (Decree 120) to amend a number of articles of Decree No. 198/2004/ND-CP on collection of land use fees (Decree 198).
The salient provisions of Decree 120 are presented below.
Recording land use fees as a debt
Under Decree 120, households and individuals that are allocated land by the State for resettlement but cannot afford to promptly pay land use fees may have such unpaid amounts recorded as a debt owed to the State in their land use right certificates. They will have to pay these debts within five years on an amortisation basis. In cases where payment is made after the term, these land users must pay land use fees in accordance with the price computed at the time of payment.
Under Decree 198, the above entities were not allowed to have the land use fees recorded as a debt on their land use right certificates.
Supplement of land use fee exemption cases
Under Decree 198, land use fees were exempted in the following cases:
- land for construction of students' dormitories
- land for construction of dwelling houses for displaced people due to natural calamities
- land for construction of dwelling houses of ethnic minority people in areas facing exceptionally difficult socio-economic conditions
Decree 120 now prescribes more cases eligible for such exemption:
- land for construction of dwelling houses for sale (on a lump sum or instalment basis), for rent or for lease-purchase by low-incomers in urban areas
- land allocated to be used as hydroelectric reservoir bed
Reduction of land use fees
Decree 120 also sets out cases where reduction of land use fees applies. Ethnic minority families and poor households may be entitled to 50% reduction of such fees.
Decree 120 took effect from 1 March 2011.