Converting 184m2 of perennial crop land to residential land
On July 13, the Ministry of Finance's electronic information portal posted the content of the tax authority's response on the calculation of land use fees when converting perennial crop land to residential land.
According to the content of the question, the parents of a resident in Can Tho city were given a land plot of 1,757m2 and built a house from 1988. In 1998, the family was granted a land use right certificate, including 100m2 of residential land and 1,657m2 of perennial crop land.
In 2004, people were given 184m2 of land for perennial crops by their parents, separated from the above land plot and issued separate land use right certificates.
People requested functional agencies to guide whether the method of calculating land use fees at point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 and Decree No. 50/2026/ND-CP is applied in the case of converting 184m2 of this perennial crop land to residential land or not.
Answering the above content, Can Tho City Base 1 Tax Department said that to determine whether the land plot is eligible for policy application or not, functional agencies need to clarify the object and origin of land use.
The authority to determine the object and origin of land use belongs to the agency that prepares the cadastral information transfer slip. In this case, the competent authority to determine is the commune-level People's Committee where the land is located.
The tax authority will base on the information on the cadastral information transfer slip to calculate the amount of land use fees to be paid and the applied land use fee level; not automatically determining the origin of the land plot.
Land use fees can be calculated at a rate of 30%, 50% or 100%
According to the regulations cited by the tax authority, the policy applies to garden land, ponds, and agricultural land in the same land plot with residential land or land originating from garden land, ponds attached to residential land but has been separated into separate plots.
When the competent authority determines that it belongs to the correct object, the land use fee is calculated on the difference between the land use fee according to the residential land price and the land use fee according to the agricultural land price at the time of the decision allowing land use purpose conversion.
The collection level is equal to 30% of the difference for the area within the residential land allocation limit.
For areas exceeding the residential land allocation limit but not exceeding one limit, the collection level is equal to 50% of the difference.
The area exceeding the above level must pay 100% of the difference.
Thus, whether people are applied the above-mentioned collection levels or not depends on the results of determining the origin of the land plot of the commune-level People's Committee and the information transferred to the tax authority.
Notably, for transitional cases specified in Clause 2, Article 12 of Decree No. 50/2026/ND-CP, households and individuals must submit a written request for calculation or recalculation of land use fees at the inter-agency one-stop shop no later than January 1, 2027.
After the above deadline, the request to calculate or recalculate land use fees according to transitional regulations may no longer be considered.
