Sending a question to the Government Electronic Information Portal, a reader said that he owns 554.6m2 of agricultural land allocated by the State without collecting land use fees.
Currently, this area has been permitted by competent authorities to change its purpose of use to commercial and service land, in the form of land lease and one-time payment for a term of 50 years.
The tax authority calculates the land rent payable by the formula: Unified price of commercial and service land x Adjustment coefficient 3.1 x Area of change of purpose of use.
Readers wonder, when calculating land rent, can the value of land use rights of the original agricultural land area be deducted?
Responding to this issue, Ho Chi Minh City Tax Department informed that, based on the decision issued on September 23, 2024 by the People's Committee of District 12 (old) on allowing the conversion of land use purposes to non-agricultural production and business land (commercial and service land), with an area of 554.6m2 of agricultural land received by the State for transfer (issued with a land use right certificate) without collecting land use fees.
The form of land use after changing the purpose of land use is to lease land and pay a one-time land rent for the entire lease term. The land lease term after changing the land use purpose is 50 years from the date of signing the decision (September 23, 2024).
On January 16, 2025, the District 12 Tax Department issued an official dispatch to respond and handle the dossier according to the content of the citizen's reflection and recommendation.
At Point a, Clause 1, Article 34 of Decree No. 103/2024/ND-CP, regulations on land use fees and land rents are as follows:
In case of conversion from agricultural land or non-agricultural land allocated by the State without collecting land use fees to non-agricultural land leased by the State, the annual land rent must be paid or the land rent must be paid once for the entire lease term, according to the type of land after changing the land use purpose calculated according to the provisions of Article 30 of this Decree.
Pursuant to Point a, Clause 2, Article 30 of Decree No. 103/2024/ND-CP:
Land rent paid once for the entire lease term = Land rent calculation area x soil rental price for one-time land rental payment for the entire lease term.
Clause 3, Article 2 of Decision No. 56/2023/QD-UBND dated December 21, 2023 of the Ho Chi Minh City People's Committee stipulates that the land price adjustment coefficient is applied depending on the area, Area 3 (old District 12) applies the land price adjustment coefficient 3.1 times.
Therefore, the reader's file on changing land use purposes with the form of land lease with one-time payment for the entire lease term (50 years) is not subject to deduction of the value of agricultural land use rights before changing the purpose.
