Citizens sent questions to the Ministry of Agriculture and Environment questioning that the agricultural land plot is less than 0.5 hectares, has a red book for agricultural land and is valid until 2063. Now according to the construction planning, this land has the function of trade and services.
After implementing the two-level local government, can the above land be converted from agricultural land to commercial service land? Which agency exercises authority? What does the conversion application include? Is land tax calculated annually or calculated until 2063?
Responding to this content, the Ministry of Agriculture and Environment said that Clause 1, Article 121 of the Land Law stipulates that cases of land use purpose conversion must be permitted by competent state agencies, including:
"a) Conversion of rice-growing land, special-use forest land, protective forest land, and production forest land to other types of land in the agricultural land group;
b) Conversion of agricultural land to non-agricultural land..."
Clause 2, Article 123 of the Land Law and Decree No. 151/2025/ND-CP on decentralization and division of authority in the land sector stipulate:
2. The People's Committee at the commune level decides to allocate land, lease land, and permit change of land use purpose in the following cases:
a) Land allocation, land lease, permission to change land use purpose for individuals. In case of leasing land to individuals, allowing the conversion of agricultural land use purposes for commercial and service purposes with an area of 0.5 ha or more, there must be a written approval from the Provincial People's Committee before making a decision.
Article 155 of the Land Law stipulates the basis for calculating land use fees, land rents; time of land valuation, time of calculating land use fees, land rents
1. The basis for calculating land use fees includes:
a) Land area assigned, changed in purpose of use, recognized for land use rights;
b) Land price according to the provisions of Articles 159 and 160 of this Law; in case of auctioning land use rights, the land price is the winning auction price;
c) Policy on exemption or reduction of land use fees of the State.
2. The basis for calculating land rent includes:
a) Land area for lease;
b) Land lease term, land use extension term;
c) Unified land rental price; in case of auctioning land rental rights, the rental land price is the winning auction price;
d) The form of land lease by the State collecting annual land rent or land lease collecting one-time land rent for the entire lease term;
d) Policy on exemption and reduction of land rent of the State.
3. The time of land valuation, the time of calculating land use fees and land rents is stipulated as follows:
a) In the case of land allocation, land lease, permission to change land use purpose, land use extension, adjustment of land use term, change of land use form, the time when the State issues a decision on land allocation, land lease, permission to change land use purpose, land use extension, adjustment of land use term, change of land use form, except for the case specified in Clause 7, Article 124 of this Law;
b) In the case of recognition of land use rights, it is the time when the land user, owner of the property attached to the land or the representative of the land user, owner of the property attached to the land submits a complete and valid dossier according to the provisions of law;
c) In case the competent state agency adjusts the decision on land allocation or lease but changes the area, land use purpose, and land use term, the time when the competent state agency adjusts the decision on land allocation or lease;
d) In case the competent state agency decides to adjust the detailed planning according to the provisions of the law on construction and must re-determin the land price, that is the time when the competent state agency decides to adjust the detailed planning.
4. In case of applying land prices in the land price list to calculate land use fees and land rents, the People's Committee at the competent level must record land prices in the decision on land allocation and land lease, permission to change land use purposes, extend land use, adjust land use term, and change land use forms.
In case of determining specific land prices to calculate land use fees and land rents, the People's Committee at the competent level must issue a land price decision within 180 days from the time of land valuation as prescribed in Points a, c and d, Clause 3 of this Article.
For specific guidance, it is recommended to contact the competent land management agency in the locality for consideration according to authority.
