Regulations on calculating fees when converting agricultural land to residential land

Xuyên Đông |

The tax authority has just answered citizens about the regulations on calculating money when converting agricultural land to residential land.

On the Government Portal, reader N.T. H. in Thanh Hoa asked if when households and individuals choose a land plot to change the land use purpose from garden land, pond land and residential land to residential land, the area to be applied the policy must be added to the existing residential land area on the land plot or not.

People are also concerned whether the calculation of land use fees is carried out independently for the area of land use purpose conversion on the selected land plot or not?

Answering this question, Thanh Hoa Provincial Tax Department cited the provisions in point c, clause 2, point b, clause 3, Article 10 of Resolution No. 254/2025/QH15 of the National Assembly.

Accordingly, in case garden land, pond land, and agricultural land in the same land plot with residential land are determined when recognizing land use rights and changing the purpose to residential land, the land use fee is calculated according to the levels: 30% difference for the area within the residential land allocation limit; 50% difference for the area exceeding the limit but not exceeding one limit; and 100% difference for the area exceeding one residential land allocation limit.

This collection level is only applied once to a household or individual and is calculated on a land plot.

According to Clause 1, Clause 2 and Point c, Clause 5, Article 6 of Decree No. 50/2026/ND-CP, the calculation of land use fees according to this policy is applied once to a household or individual and calculated on a land plot selected by land users.

If households and individuals with multiple land plots are allowed to change land use purposes, they are only allowed to choose one land plot to apply the policy. This content must be committed by the land user in the application for land use purpose change.

In case competent authorities detect that households and individuals have been applied policies but still continue to request to enjoy incentives for other land plots, the tax authority will recalculate land use fees equal to 100% of the difference between land use fees according to residential land prices and land use fees according to agricultural land prices.

The amount paid is deducted from the amount to be paid back. At the same time, land users must pay an amount equivalent to the late payment level as prescribed.

Thanh Hoa Provincial Tax Department also said that the land allocation limit for calculating land use fees is the limit prescribed by a competent state agency at the time of the decision allowing land use purpose conversion.

Based on the above regulations and Official Dispatch No. 7713/BTC-QLCS dated June 8, 2026 of the Ministry of Finance, the tax authority said that the calculation of land use fees for cases specified in point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 is applied once to a household or individual and calculated on a land plot selected by land users.

Notably, the calculation of land use fees is carried out for the area of land converted for land use purposes. Point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 does not stipulate the accumulation of existing residential land areas.

Xuyên Đông
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