The Ministry of Finance is submitting a draft Resolution of the Government on removing and handling problems related to calculating land use fees for households and individuals when converting agricultural land use purposes to residential land.
Explaining the need for this Resolution in practice, the Ministry of Finance said:
The National Assembly issued Land Law No. 31/2024/QH15, effective from August 1, 2024. In particular, Clause 1, Article 156 of the 2024 Land Law stipulates: When changing the purpose of land use, the land user must pay the land use fee and land rent paid once for the entire lease term equal to the difference between land use fee and land rent of the land type after changing the land use purpose and land use fee, land rent of the land type before changing the land use purpose.
Implementing the 2024 Land Law, the Government issued Decree No. 103/2024/ND-CP dated July 30, 2024 regulating land use fees and land rents.
Article 8 of Decree No. 103/2024/ND-CP stipulates the calculation of land use fees when changing land use purposes for households and individuals according to the principle prescribed in Clause 1, Article 156 of the 2024 Land Law as mentioned above.
Accordingly, households and individuals who change the purpose from agricultural land to residential land shall calculate land use fees at the difference between land use fees according to residential land prices minus land use fees according to agricultural land prices at the time of the decision allowing the change of land use purpose.
However, in recent times, the Ministry of Finance has received opinions, recommendations, and proposals from localities and information reflecting from the press about the fact that the land price on the Land Price List in some localities determined by the 2024 Land Law is dramatically higher than the old Land Price List (according to the 2013 Land Law, in which the land price is many times higher than the agricultural land price), so when the State allows the conversion of land use purposes from agricultural land to residential land, households and individuals must pay land use fees many times higher than before and have a proposal to adjust the land use fee collection level in this case to reduce financial obligations for people.
During the drafting of the Decree amending and supplementing a number of articles of Decree No. 103/2024/ND-CP dated July 30, 2024 of the Government regulating land use fees, land rents and Decree No. 104/2024/ND-CP dated July 31, 2024 of the Government regulating the Land Development Fund, to have specific data regulating the amendment of land use fee calculation for households and individuals when converting land use purposes from agricultural land to residential land, immediately after receiving feedback on the problem, the Ministry of Finance issued Official Dispatch No. 9123/BTC-QLCS dated June 24, 2025, requesting the People's Committees of provinces and centrally run cities to quickly report the implementation of land use fees when converting land use purposes for households and individuals.
The Ministry of Finance has compiled reports from localities according to the Appendix. Accordingly, 15/37 localities (according to the old administrative boundaries, as of the time of report synthesis) said they had problems and proposed solutions, including a proposal to reduce land use fees.
In response to the above opinions, recommendations, proposals and reflections, the Ministry of Finance has proposed solutions to resolve the above problems within the scope of amending and supplementing Decree No. 103/2024/ND-CP (reporting to the Government leaders at the meeting on August 5, 2025 at the Government Office).
However, in the Appraisal Report No. 338/BCTD-BTP dated July 31, 2025 on the draft Decree amending and supplementing Decree No. 103/2024/ND-CP, the Ministry of Justice commented: "In case of real necessity and reasonableness, it is recommended that the drafting agency study... propose to issue a Government Resolution under the mechanism of Resolution No. 206/2025/NQ-QH15 dated June 24, 2025 of the National Assembly on a special mechanism for handling difficulties and problems due to legal regulations".
On that basis, the Ministry of Finance has compiled and issued Document No. 493/TTr-BTC dated August 14, 2025 proposing to develop a Resolution on removing and handling problems related to calculating land use fees for households and individuals when converting land use purposes from agricultural land to residential land in the form of reduction and has been approved by the Deputy Prime Minister in Official Dispatch No. 8103/VPCP-NN dated August 29, 2025 of the Government Office with the content: " Agreeing with the proposal of the Ministry of Finance in the above official dispatch. The Ministry of Finance urgently completes the dossier to submit to the Government to ensure compliance with Resolution No. 206/2025/QH15 of the National Assembly to promptly remove obstacles for people when implementing land use purpose conversion".
Therefore, the Government's issuance of a Resolution on removing and handling problems related to calculating land use fees for households and individuals when converting land use purposes from agricultural land to residential land is well-founded, in line with the spirit of the 15th National Assembly that issued Resolution 206/2025/QH15 on the mechanism for handling difficulties and problems due to legal regulations.
"This is an urgent and important issue in the locality, directly related to social security and people's housing needs, it is necessary to soon have policies to remove obstacles before the 2024 Land Law is amended by the National Assembly and takes effect," the Ministry of Finance emphasized.
