According to Article 47 of the 2024 Land Law, individuals using agricultural land allocated by the State, converted, transferred, inherited or donated legal land use rights from others are only allowed to transfer agricultural land use rights within the same provincial-level administrative unit to other individuals. In particular, in this case, there is no need to pay income tax from the conversion of land use rights and registration fees.
The new regulation allows the conversion to be carried out more flexibly in terms of administrative scope, creating favorable conditions for people to rearrange production and use land more effectively but still within the framework of unified local management.
Regarding the conditions for exercising the right to convert, the Law clearly stipulates that land users must have a Certificate of Land Use Rights or equivalent legal documents according to the provisions of law. The converted agricultural land must be guaranteed to have no disputes, not be seized for enforcement of judgments and have a term of use.
At the same time, the conversion is only carried out in the same provincial-level administrative unit. In case the land user is slow to fulfill financial obligations or is in debt to financial obligations, it must be fully completed before making the conversion.
Also according to Point b, Clause 3, Article 27 of the 2024 Land Law, the contract for converting agricultural land use rights must be notarized or certified at the request of the parties.
After completing the notarization or certification, people submit the documents to the Land Registration Office or the Branch of the Land Registration Office where the land is located to carry out the procedure for registration of changes. The land registration agency is responsible for measuring, adjusting land records and issuing new Land Use Rights Certificates to the conversion recipient.
According to current regulations of the Law on Personal Income Tax (amended in 2014) and Decree No. 10/2022/ND-CP on registration fees, cases of conversion of agricultural land use rights between households and individuals in the same commune, ward, or town are exempt from personal income tax and registration fees.
From August 1, 2024, the 2024 Land Law will expand the scope of allowing agricultural land conversion in the same province, but regulations on tax and fee exemptions are still applied at the commune level, until a new guiding document is issued.
The above regulations are applied uniformly nationwide, contributing to ensuring the conversion of agricultural land use rights to take place in accordance with procedures and transparency, creating convenience for people and in accordance with local planning and land use plans.
