Answering questions about reducing land use fees when converting agricultural land to residential land

Xuyên Đông |

The tax authority has just answered citizens' questions about reducing land use fees when converting agricultural land to residential land, a land with many fluctuations.

On the Ministry of Finance's Information Portal, Mr. V.X. T reflected that in 2002, Mr. T's father was granted a red book, an area of 662 m2, which is residential land.

By 2016, when red books were re-issued, the area was re-determined to include 300 m2 of residential land and 362 m2 of perennial crop land.

Also in 2016, Mr. T's father separated the plot and donated to Mr. T's older brother a plot of land with an area of 353 m2 (including 150 m2 of residential land and 203 m2 of perennial crop land). In 2022, Mr. T's older brother continued to carry out procedures to donate the right to use this land plot to Mr. T.

Currently, Mr. T is requesting to change the land use purpose for the 203 m2 area from perennial crop land to residential land on the above-mentioned land plot.

Mr. T asked "for cases where the origin of land of households has changed, donated through generations and now individuals apply to change land use purposes to residential land, are you eligible for consideration for exemption or reduction (70% or according to other regulations) of land use fees according to the provisions of land law and current tax laws?

Regarding the above question, the base tax of 10 provinces of Bac Ninh has the following answer:

Point c, clause 2, article 10 of Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly stipulates a number of mechanisms and policies to remove difficulties and obstacles in the organization of the implementation of the land law as follows:

Exemption and reduction of land use fees, land rent; payment of land use fees, land rent when changing land use purposes:

When changing the land use purpose specified in points b, c, d, đ, e and g, clause 1, Article 121 of the Land Law, land users must pay land use fees and land rent according to the following regulations:

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 land users separate 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% 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% difference for the area of land exceeding the limit but not exceeding 01 time the residential land allocation limit in the locality; 100% difference for the area of land exceeding the limit but exceeding 01 time the residential land allocation limit in the local The above-mentioned land use fee is only calculated once for one household or individual (calculated per land plot)”.

In Decree No. 50/2026/ND-CP dated January 31, 2026 of the Government detailing a number of articles of Resolution No. 254/2025/QH15.

In which, Article 6 stipulates the calculation of land use fees for households and individuals when converting the land use purpose of gardens, ponds, and agricultural land to residential land as stipulated in point c, clause 2, Article 10 of Resolution 254/2025/QH15.

Thus, at point c, clause 2, article 10 of Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly, Article 6 of Decree No. 50/2026/ND-CP dated January 31, 2026 of the Government (mentioned above) stipulates the calculation of land use fees for households and individuals when converting the land use purpose of garden, pond, and agricultural land to residential land.

These cases apply this regulation including:

Garden land, pond land, and agricultural land in the same land plot with residential land are determined when land use rights are recognized.

Land originating from garden land, pond attached to residential land, but land users separate it to transfer land use rights.

The land originates from garden land, ponds attached to residential land, which was self-measured and separated into separate plots by the surveying unit when drawing cadastral maps before July 1, 2014.

Based on the above regulations, the tax authority requests Mr. T to compare with the provisions of law, dossiers and origin of land use to the Commune People's Committee to be guided on procedures for applying for land use purpose conversion and to enjoy exemption and reduction of land use fees.

Xuyên Đông
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