Knowing how much it costs to convert agricultural land to residential land will help people be more proactive about finances, and also avoid late payments to the state budget.
Upon receiving a notice of payment to the state budget from the tax authority, people are responsible for paying the correct amount and on time as per the notice; if it is necessary to compare with the payment notice, people can do it themselves according to the following calculation:
Cost of converting agricultural land to residential land
* Land use fee
According to Clause 1 and Clause 2, Article 8 of Decree 103/2024/ND-CP, when converting agricultural land to residential land, land use fees are calculated as follows:
* Certificate issuance fee
- Submission level: From 100,000 VND or less/issuance.
* Registration fee
- Subjects required to pay: In most cases, no payment is required, only applicable to cases of granting a Certificate of Land Use Rights that are exempt from registration fees, and then changing the land use purpose that is subject to payment of fees.
- How to calculate registration fee:
Registration fee = (Land price in land price list x Area) x 0.5%
* Application appraisal fee
The file appraisal fee is prescribed by the People's Council of the province or centrally-run city, so:
- Not all provinces and cities collect this fee.
- If there is any tax, the tax rate between provinces and cities is not the same.
Deadline for payment of funds to the budget
Pursuant to Clause 4 and Clause 8, Article 18 of Decree 126/2020/ND-CP, the deadline for paying land use fees and registration fees is as follows:
* Land use fee
- No later than 30 days from the date of issuance of the notice of land use fee payment, the land user must pay 50% of the land use fee according to the notice.
- No later than 90 days from the date of issuance of the notice of land use fee payment, the land user must pay the remaining 50% of the land use fee according to the notice.
* Registration fee: The deadline for paying registration fee is no later than 30 days from the date of issuance of the notice, except in cases where the taxpayer is credited with registration fee debt.
Above is the regulation answering the question of how much does it cost to convert agricultural land to residential land? However, because each plot of land has a different land price, the article presents a specific calculation method, from which people can calculate the amount themselves or estimate the amount to be paid to prepare in advance.
