basis for calculating land use fees
Land use fee is the amount of money that land users must pay when the State allocates land with land use fees, permits change of land use purpose or other cases as prescribed by law (according to Clause 44, Article 3 of the 2024 Land Law).
According to Clause 1, Article 155 of the 2024 Land Law, land use fees are determined based on the following factors:
The land area is allocated, the purpose of use is changed, and the land use rights are recognized.
Land price according to regulations in Articles 159 and 160 of the 2024 Land Law. If auctioning land use rights, the land price is the winning price.
The State's policy of exemption and reduction of land use fees is regulated.
In case of using the land price list to calculate land use fees and land rents, the People's Committee (UBND) at the competent level must clearly state the land price in the decision on land allocation, land lease, permission to change land use purpose or adjust land use term.
For determining specific land prices, the People's Committee at the competent level must issue a land price decision within 180 days from the time of valuation according to regulations.
How to calculate land use fees when converting agricultural land to residential land
According to Clause 1, Clause 2, Article 8 of Decree 103/2024/ND-CP, land use fees when converting from agricultural land to residential land are calculated according to the formula:
Land use fee when converting land use purpose to residential land = Land use fee of the land type after changing land use purpose - Land use fee, land rent of the land types before changing land use purpose (if any).
In which:
- Land use fee of the land type after changing purpose:
Land use fee after changing land use purpose = Land area for calculating land use fee after changing purpose x Land price for calculating land use fee.
- Land use fees and land rents of land types before changing the purpose of use are calculated as follows:
If the land before changing purpose is agricultural land allocated by the State without collecting land use fees or has a legal origin transferred, the land use fee before conversion is calculated according to the formula:
Land fee before changing land use purpose = Land area x Land price of corresponding agricultural land type in the Land Price List.
If the land before changing purpose is agricultural land leased by the State in the form of annual land rent payment, the land use fee before changing purpose will be calculated at 0.
Determining land use fees is an important factor in the process of converting land use purposes. People need to clearly understand the regulations to avoid errors and calculate costs appropriately when implementing conversion.
