Tax authorities answer the case of reducing money when converting agricultural land to residential land

Xuyên Đông |

On the Ministry of Finance's Information Portal, the tax authority has just answered people's questions about reducing money when converting agricultural land to residential land.

Mr. T.N. N in Ho Chi Minh City reflected that his father received the transfer of a land plot in Di An ward, Ho Chi Minh City in December 2025.

The land plot has a total area of 850m2, including 250m2 of residential land and 600m2 of perennial crop land (agricultural land).

The origin of the land plot was identified as perennial crop land, then it was converted to residential land with an area of 250m2 from 2010. Currently, Mr. N's father is carrying out procedures to convert the land use purpose of an additional 200m2 of perennial crop land to residential land.

From the above reality, Mr. N requested the tax authority to clarify whether the transferred land plot originating from residential land and perennial crop land from 2010 belongs to the category of "land originating from garden and pond land attached to residential land but land users separate it to transfer land use rights" as prescribed in point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 or not?

At the same time, he also requested guidance on the possibility of reducing land use fees according to the provisions of Resolution No. 254/2025/QH15 and Decree No. 50/2026/ND-CP.

Answering the above content, Base Tax 26 of Ho Chi Minh City answers as follows:

Based on point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly, it is stipulated:

In case garden land, pond land, agricultural land in the same land plot with residential land are determined when recognizing land use rights and changing land use purposes to residential land; converted from land originating from garden land, pond land attached to residential land but the land user separates it to transfer land use rights or it is self-measured and separated into separate plots into residential land by the surveying unit when measuring and drawing cadastral maps before July 1, 2014, the land use fee is calculated according to the collection level equal to: 30% of the difference between land use fees calculated according to residential land prices and land use fees calculated according to agricultural land prices at the time of the decision allowing land use purpose conversion (hereinafter referred to as difference) for the area of land converted for land use purposes within the residential land allocation limit in the locality; 50% of the difference for the area of land exceeding the limit but not exceeding 1 time the residential land allocation limit in the locality; 100% of the difference for the area of land exceeding the limit but exceeding 1 time the residenti The above-mentioned land use fee is only calculated once for one household or individual (calculated per land plot)".

Based on Clause 2, Article 6 of Decree No. 50/2026/ND-CP dated January 31, 2026 of the Government stipulates:

In case households and individuals with many land plots (including many land plots within many provinces and centrally-run cities) are allowed to change land use purposes according to the provisions of this Decree, that household or individual is allowed to choose 1 land plot to apply for calculating land use fees according to the provisions of this Decree. Households and individuals commit to this content and are responsible for their commitments, as shown in the application for land use purpose change".

Based on Clause 1, Article 3 of Decision No. 36/2024/QD-UBND dated October 18, 2024 of Binh Duong Provincial People's Committee (before the merger) stipulating the land allocation limit for residential land for individuals in rural and urban areas in Binh Duong province, in which:

Wards in the city: Limit of no more than 160 m2".

Based on the above regulations, the tax authority requests you to consider the actual situation of land origin, contact directly the Ward People's Committee where the land is converted for land use purposes to be guided on procedures and dossiers that are eligible for consideration according to the provisions of point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly.

Xuyên Đông
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