Guiding about the management, allocation, advance payment and reimbursement of expenses for coercive judgment enforcement against commercial juridical persons

LEGAL UPDATES

Guiding about the management, allocation, advance payment and reimbursement of expenses for coercive judgment enforcement against commercial juridical persons

On July 8th, 2021, The Minister of Finance promulgated Circular No. 55/2021/TT-BTC guidingt about the management, allocation, advance payment and reimbursement of expenses for coercive judgment enforcement against commercial juridical persons (referred to as “Circular No. 55/2021/TT-BTC” ) with some outstanding contents as follows:

a. Principles of management of enforcement expenses

Commercial juridical persons subject to enforcement must bear all expenses of enforcement activities and shall pay all enforcement expenses to the enforcement decision-making authority.

b. Content of enforcement expenses

  • Enforcement expenses based on contracts, contract termination records, minutes on handover of distrained property (in case of for the cost of renting or preserving the distrained property), invoices and evidence of actual, legitimate and valid expenditures in accordance with current regulations and must be subject to an approval granted by enforcement decision-maker;
  • Expenses for fostering those directly mobilized to participate in coercion and protection, the expenses for the person in charge of the enforcement decision under the enforcement decision-executing authorities is 150,000 VND/person/day; the level of expenditure for persons mobilized to participate in the enforcement decisions is 100,000 VND/person/day to participate in enforcement;
  • The allocation of expenses for coercive judgment enforcement for commercial juridical persons shall comply with the provisions of the law on the state budget and the Decree No. 11/2020/ND-CP dated January 20th, 2020 regulations on administrative procedures in the field of State Treasury.

c. Settlement and reimbursement of enforcement expenses

Upon the completed execution of the enforcement decision, the enforcement decision-executing authority shall submit the enforcement decision-maker to approve of the settlement of enforcement expenses. The enforcement decision-making authority is responsible for sending the approved coercion expenses finalization to the coerced subject (if the subject of enforcement has paid the enforcement expenses). In particular, the implementation instructions for some specific cases are as follows:

  • In the case where the advance on enforcement expenses has been made as prescribed, based on the approved statement on settlement of enforcement expenses, the enforcement decision-making authority shall issue a written notice of the approved statement on payment of enforcement expenses to the coerced subject to ask them to pay enforcement expenses (the written notice must clearly state the date (day, month and year) of the sanction, the amount to be paid, the address for payment in cash or the account number in case of payment by bank transfer and other necessary information);
  • Suppose the enforcement expenses are collected from the asset auction proceeds as prescribed. After deducting the asset auction expenses under the Law on Property Auction, the judgment enforcement authority shall make an enforcement decision to reimburse enforcement expenses. If the coerced subject has paid enforcement expenses, the enforcement decision-executing authority shall return the enforcement expense amount from the asset auction proceeds to the coerced subject;
  • Suppose it is impossible to recover the enforcement expenses because the coerced subject is bankrupt or dissolved but has no money or property to pay the enforcement expenses. In that case, the enforcement decision-executing authority shall report to the enforcement decision-maker.

Circular No. 55/2021 shall enter into force as of August 25th, 2021.

If you have any questions or require any additional information, please contact Apolat Legal – An International Law Firm in Viet Nam.

This legal update is for general information only and is not a substitute for legal advice.