Circular No. 74/2015/TT-BTC guides the preparation of budgets, use, and settlement of funds for organizing compensation, support, and resettlement when the State requisitions land.

CIRCULAR

Guidelines for preparing budgets, using, and settling accounts for expenses to organize compensation, support, and resettlement when the State requisitions land.

support, resettlement when the State requisitions land.

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The Government issues this Decree on management and development of industrial clusters.

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to Decree No. 43/2014/NĐ-CP dated May 15, 2014 of the Government detailing certain provisions of the Land Law;

Pursuant to Decree No. 47/2014/NĐ-CP dated May 15, 2014 of the Government on compensation, support, and relocation when the State acquires land;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues a Circular guiding the preparation of budgets, use, and settlement of accounts for expenses to organize compensation, support, and resettlement when the State requisitions land for national defense, security, economic and social development purposes for the benefit of the nation and public interest as stipulated in Article 61 and Article 62 of the Land Law 2013, including cases where compensation, support, and resettlement are separated into separate sub-projects according to Article 29 of Decree No. 47/2014/NĐ-CP dated May 15, 2014 of the Government on compensation, support, and resettlement when the State requisitions land; requisitioning residential land in areas with environmental pollution posing a threat to human life and residential land at risk of landslides, subsidence, or affected by natural disasters threatening human life as stipulated in point d and point e, Clause 1, Article 65 of the Land Law 2013.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Organizations entrusted by competent state agencies to carry out tasks of compensation, support, and resettlement when the State requisitions land (hereinafter referred to as the Organization carrying out compensation tasks).

Article 2. Applicability

2. Other related entities involved in the preparation, use, and settlement of accounts for expenses to organize compensation, support, and resettlement when the State requisitions land.

Article 3. Sources and levels of funds allocated to ensure the organization of compensation, support, and resettlement and forced inventory and forced land requisition.

Chapter II

SPECIFIC PROVISIONS

1. The source of funds to ensure the organization of compensation, support, and resettlement shall be extracted not exceeding 2% of the total compensation, support, and resettlement costs of the project or sub-project, except in the case provided for in Clause 2 of this Article.

2. For projects or sub-projects implemented in areas with difficult socio-economic conditions or extremely difficult conditions as prescribed by laws on investment; construction projects of infrastructure works along routes, the Organization carrying out compensation tasks may prepare a budget for organizing compensation, support, and resettlement of the project or sub-project based on actual workload without being restricted to a ratio of 2% of the total compensation, support, and resettlement costs of the project or sub-project.

3. Based on the specific amount of funds that can be extracted for each project or sub-project, the Organization carrying out compensation tasks shall determine the contingency fund for organizing forced inventory and forced land requisition not exceeding 10% of the amount specified in Clauses 1 or 2 of this Article to be included in the overall budget.

4. Based on the provisions of Clauses 1, 2, and 3 of this Article, the Department of Finance shall submit to the People's Committee of the province or centrally-administered city (hereinafter referred to as the Provincial People's Committee) for decision on the specific amount of funds to be extracted and the proportion of the contingency fund suitable to the scale, nature, and characteristics of the project or sub-project.

5. In cases where provincial-level land clearance steering committees have been established at the local level, based on the tasks of the provincial-level land clearance steering committee, the Department of Finance shall submit to the Provincial People's Committee for a specific decision on the ratio of allocation of funds for the activities of the Organization carrying out compensation tasks and the provincial-level land clearance steering committee in accordance with the situation.

6. In cases where service providers are hired to perform compensation, support, and resettlement services, the cost paid to the service provider shall be included within the budget for organizing compensation, support, and resettlement approved by the competent state agency.

a) Expenses for propaganda on policies and regulations regarding compensation, support, and resettlement when the State requisitions land; organizing mobilization of relevant parties to implement the land requisition decision;

Article 4. Contents of expenditures for organizing and implementing compensation, support, resettlement, and forced inventory and land recovery

1. Contents of expenditures for organizing and implementing compensation, support, and resettlement:

b) Expenses for inventory and assessment of land and assets actually damaged including: distributing declaration forms, guiding those affected to declare; measuring to determine land area, inventorying quantity and value of houses, constructions, crops, livestock, and other assets damaged when the State requisitions land from organizations, households, and individuals; checking and comparing declarations with inventory results, determining damage levels for each specific land requisition target; calculating the value of damages to land, houses, constructions, crops, livestock, and other assets;

c) Expenses for determining land prices including hiring consultants to determine land prices, adjusting land price compensation factors (if applicable), appraising specific land prices; determining the value of assets attached to land for land requisition, compensation, support, and resettlement when the State requisitions land;

d) Expenses for preparing, approving, and publicly announcing compensation plans from the calculation stage of compensation indicators to the approval stage of compensation plans, and publicly announcing compensation plans;

đ) Expenses for reviewing compensation plans and support plans;

e) Expenses for supervising the implementation of compensation policies, resolving difficulties in compensation work, and organizing payment of compensation;

g) Expenses for renting office space and working equipment for the Organization carrying out compensation tasks and the appraisal agency (if any);

h) Expenses for printing, photocopying documents, office supplies, and fuel;

i) Expenses for hiring labor to carry out compensation, support, and resettlement tasks (if any);

k) Other related expenses directly related to the organization of compensation, support, and resettlement.

a) Expenses for notification, propaganda, and mobilization of relevant parties to implement forced inventory and forced land requisition decisions;

2. Contents of expenditures for organizing and implementing forced inventory and land recovery:

b) Expenses for purchasing raw materials, fuels, renting vehicles, medical equipment, fire prevention equipment, and other necessary equipment and vehicles for the implementation of forced inventory and forced land requisition;

c) Expenses for organizing the execution of forced inventory and forced land requisition decisions.

c) For serving the work of organizing the enforcement of decisions on compulsory inventory, and compulsory recovery of land;

d) Sealing, breaking, dismantling, transporting assets; relocating persons subject to compulsory recovery and related persons from the land subject to compulsory recovery; renting locations, labor, means of asset preservation, and other actual and lawful expenses directly serving the preservation of assets during the implementation of compulsory recovery of land when the owner of the assets does not settle the costs;

đ) Expenses for filming and photographing activities serving the implementation of compulsory inventory counting and compulsory recovery of land;

e) Costs for protecting and preventing reoccupation of land after the organization has completed the compulsory recovery of land until the completion of land clearance;

g) Other related expenses directly associated with organizing and implementing forced inventory counts and forced land recovery.

Article 5. The level of expenditure for organizing and implementing compensation, support, resettlement, and forced inventory counts and forced land recovery.

1. For expenditure items that have established norms, standards, and unit prices prescribed by competent state agencies, they shall be implemented in accordance with current regulations.

2. For expenditure items without established standards, norms, or unit prices set by competent state agencies, the People's Committee of the province shall base on the actual situation in the locality to establish appropriate regulations; except for the expenditure items stipulated in Clauses 3, 4, and 5 of this Article.

3. For office space and working equipment of organizations tasked with compensation and appraisal agencies, these entities are responsible for arranging and organizing within their existing working premises and equipment to serve their operations.

In cases where it is not possible to arrange within the existing premises and equipment, rental of office space and working equipment is allowed. The rental of office space and working equipment shall be carried out in accordance with the laws on state asset management and use and the laws on bidding.

4. Printing, photocopying expenses, office supplies, fuel, logistical support services, and other expenses serving the administrative machinery shall be calculated based on the actual needs of each project and sub-project.

5. Compensation service provision costs paid to service providers shall be implemented through contracts signed between the organization tasked with compensation and the service provider. Service providers have the obligation to fulfill the signed contracts and relevant laws. The selection of service providers shall be conducted in accordance with the laws on bidding.

Article 6. Preparation, utilization, and settlement of funds for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land

1. The preparation of the budget for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land shall be carried out as follows:

a) Along with the preparation of the compensation, support, and resettlement plan; the organization tasked with compensation bases on the amount of funds allocated according to Clause 4 of Article 3, the expenditure items stipulated in Clause 1 of Article 4, the expenditure levels specified in Article 5 of this Circular, and the expected workload to prepare the budget for the implementation of compensation, support, and resettlement and the reserve fund for the implementation of compulsory inventory counting and compulsory recovery of land.

The organization tasked with compensation sends the budget to the Department of Finance for review (for projects and sub-projects approved by the provincial People's Committee on compensation, support, and resettlement plans, including cases where projects and sub-projects are funded from the Land Development Fund or temporarily funded from the State Treasury); sends to the Finance Office for review (for projects and sub-projects approved by the district, county, town, city under the province People's Committee on compensation, support, and resettlement plans) to submit to the same-level People's Committee for approval.

For projects using central government budget funds on local territory, the Department of Finance (Finance Office) sends the budget for the implementation of compensation, support, and resettlement and the reserve fund for the implementation of compulsory inventory counting and compulsory recovery of land to seek the opinion of the project or sub-project investor before submitting to the same-level People's Committee for approval. The project or sub-project investor must provide written comments within thirty working days from the date of receipt of the request for comments.

b) When there is a decision on compulsory inventory counting and compulsory recovery of land by a competent state agency, the organization tasked with compensation bases on the expenditure items stipulated in Clause 2 of Article 4 and the expenditure levels specified in Article 5 of this Circular to prepare a detailed budget for the implementation of compulsory inventory counting and compulsory recovery of land and send it to the financial agency specified in point a of this clause for review and submission to the same-level People's Committee for approval;

c) After the budget has been approved by a competent state agency, the organization tasked with compensation sends a copy to the project or sub-project investor or the Land Development Fund or the State Treasury for coordination in implementation.

2. The utilization of funds for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land shall be carried out as follows:

a) Based on the approved budget by a competent state agency: the project investor or the Land Development Fund or the State Treasury implements the transfer of money or advance funding or temporary advance funding to the organization tasked with compensation according to the progress of implementation.

In cases where projects and sub-projects require urgent implementation of compensation, support, and resettlement work as decided by a competent state agency but the budget has not yet been approved, the organization tasked with compensation may temporarily receive part of the funds (excluding the funds for the implementation of compulsory inventory counting and compulsory recovery of land) from the project or sub-project investor to implement;

b) The head of the organization tasked with compensation is responsible for managing and utilizing the funds for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land of the project or sub-project according to the approved budget by a competent state agency;

c) In cases where service providers are hired to perform compensation and resettlement services, the organization tasked with compensation shall make payments to the service providers according to the signed contracts;

d) The use and accounting of funds for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land shall be carried out in accordance with the laws on state budget.

3. The settlement of funds for the implementation of compensation, support, resettlement, and compulsory inventory counting and compulsory recovery of land shall be carried out as follows:

a) Settlement of funds for the implementation of compensation, support, and resettlement:

- Within thirty working days from the date of completing compensation work and land clearance, the organization performing the compensation task shall be responsible for collecting actual cost vouchers of each project and sub-project, preparing a final settlement report on the implementation costs of compensation, support, and resettlement received and utilized for each project and sub-project, and submitting it to the financial agency specified in point a, Clause 1, Article of this Law for approval according to the provisions of the State budget law.

The financial agency specified in point a, Clause 1, Article of this Law shall approve the settlement and issue a notification document regarding the approved settlement amount to the project investor or Land Development Fund; this notification document serves as evidence for implementing the final settlement of implementation costs for compensation, support, and resettlement of each project and sub-project.

- In cases where the organization performing the compensation task is assigned to carry out multiple projects and sub-projects simultaneously and the common costs cannot be separately tracked for each project and sub-project, the organization performing the compensation task shall aggregate all common costs for the fiscal year and allocate them to each project and sub-project using the following formula:

The organization performing the compensation task shall prepare a table allocating common costs for the fiscal year to each project and sub-project (accompanied by all common cost vouchers generated during the year) and direct cost vouchers for each project and sub-project; prepare a final settlement report on the implementation costs for compensation, support, and resettlement and submit it to the financial agency specified in point a, Clause 1, Article of this Law for approval according to the provisions of the State budget law.

The financial agency specified in point a, Clause 1, Article of this Law shall approve the settlement and issue a notification document regarding the approved settlement amount to the project investor or Land Development Fund; this notification document serves as evidence for implementing the final settlement of implementation costs for compensation, support, and resettlement of each project and sub-project.

For common costs allocated to each project and sub-project that have been settled within the year but the compensation and land clearance tasks of the project and sub-project have not yet been completed, these costs shall be recorded for use in the final settlement of the total implementation costs for compensation, support, and resettlement of the project and sub-project upon completion of the compensation and land clearance tasks.

Example: Organization X performing the compensation task was authorized by the competent state agency to concurrently implement compensation, support, and resettlement tasks for four projects (A, B, C, D) in 2015. The results of the task implementation by Organization X up to the end of 2015 are as follows:

(1) Completed land clearance tasks for 3 out of 4 projects, namely Projects A, B, and C. Project D has not yet completed its land clearance task.

(2) Direct costs incurred by Organization X for each project in 2015 were as follows: Project A: 400 million VND; Project B: 350 million VND; Project C: 300 million VND; Project D: 550 million VND. Total direct costs implemented in 2015 for all four projects amounted to: 1,600 million VND.

(3) Common costs incurred in 2015 for all four projects, yet to be allocated, totaled: 400 million VND.

(4) According to the above allocation formula, the common costs allocated to each project are as follows:

- Project A = (400 : 1,600) x 400 = 100 (million VND);

- Project B = (400 : 1,600) x 350 = 87.5 (million VND);

- Project C = (400 : 1,600) x 300 = 75 (million VND);

- Project D = (400 : 1,600) x 550 = 137.5 (million VND). This amount will be used for settlement when the land clearance task for Project D is completed.

- Handling the difference between the actual expenditure according to the approved settlement and the received funding in cases of individual project and sub-project settlements or multiple project and sub-project settlements shall be carried out as follows:

+ If the actual expenditure according to the approved settlement exceeds the received funding, the organization performing the compensation task shall be reimbursed for the difference, but not exceeding the maximum amount stipulated in Clause 4, Article 3 of this Circular.

+ If the actual expenditure according to the approved settlement is less than the received funding, the organization performing the compensation task shall transfer the excess back to the project investor (or Land Development Fund if the funding was received from the Land Development Fund) within thirty working days from the date the competent state agency approves the settlement.

b) Settlement of implementation costs for forced inventory counting and forced land recovery:

- Within thirty working days from the date of completing compensation and land clearance tasks, the organization performing the compensation task shall be responsible for reporting the final settlement of implementation costs for forced inventory counting and forced land recovery to the financial agency specified in point a, Clause 1, Article of this Law for approval according to the provisions of the State budget law.

The financial agency specified in point a, Clause 1, Article of this Law shall approve the settlement and issue a notification document regarding the approved settlement amount to the project investor or Land Development Fund; this notification document serves as evidence for implementing the final settlement of implementation costs for forced inventory counting and forced land recovery of each project and sub-project.

- The difference between the expenditure according to the approved settlement and the received funding for each project and sub-project that have completed compensation and land clearance tasks shall be handled according to the provisions of point a of this clause.

4. The organization performing the compensation task shall be responsible for managing settlement file records including the approved settlement document and all related vouchers as prescribed by law.

Chapter III

IMPLEMENTING PROVISIONS

Article 7. Transitional Provisions

1. For projects and sub-projects whose compensation, support, and resettlement plans were approved by the competent state agency before July 1, 2014, the preparation of budgets, utilization, and settlement of implementation costs for compensation, support, and resettlement when the State recovers land shall continue to be implemented according to the guidance provided in Circular No. 57/2010/TT-BTC dated April 16, 2010, issued by the Ministry of Finance, which stipulates the procedures for preparing budgets, utilizing, and settling implementation costs for compensation, support, and resettlement when the State recovers land.

2. For projects and sub-projects whose compensation, support, and resettlement plans have been approved by competent state authorities from July 1, 2014 to before the effective date of this Circular, the preparation of budget estimates, use, and settlement of funds for implementing compensation, support, and resettlement when the State recovers land shall be carried out in accordance with the guidance provided in Circular No. 57/2010/TT-BTC dated April 16, 2010 of the Ministry of Finance on the preparation of budget estimates, use, and settlement of funds for implementing compensation, support, and resettlement when the State recovers land; in cases where forced inventory taking and forced recovery of land occur, they shall be implemented in accordance with the provisions of this Circular.

Article 8. Effective Date

1. This Circular takes effect from July 1, 2015.

2. This Circular replaces Circular No. 57/2010/TT-BTC dated April 16, 2010 of the Minister of Finance on the preparation of budget estimates, use, and settlement of funds for implementing compensation, support, and resettlement when the State recovers land.

3. During implementation, if there are any difficulties, it is requested that agencies, organizations, and units promptly reflect them to the Ministry of Finance for coordination in resolution./.