Questions about the form of payment when changing land use purposes

Thuận Hiền |

Converting agricultural land to production and business land, paying annual or one-time land rent? Readers wondered because the two calculations were different.

Reader Le Van T. reflected that his family needs to convert 500m2 of agricultural land to non-agricultural production land (land for production and business) because it is in accordance with local planning.

During the investigation, Mr. T. learned that after changing the purpose, the land would be leased by the State and had to pay the annual rent. However, some local officials informed that in this case, the rental fee must be paid once for the entire rental period.

According to Mr. T., the difference between these two forms of payment will directly affect the rights of land users, so he hopes that the authorities will clarify: in case of changing the land use purpose of his family, how will he have to pay the money?

Responding to readers' questions on the electronic information portal, the Ministry of Finance said that Clauses 2 and 3, Article 120 of the 2024 Land Law have specifically stipulated the cases where the State leases land and collects one-time fees for both the lease term and the cases of land lease collects annual fees.

The 2024 Land Law is chaired by the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment) and submitted to the Government and the National Assembly for promulgation. Currently, this Ministry is also the agency assigned to preside over the amendment and guidance on the implementation of the law.

In addition, at Point d, Clause 20, Article 2 of Decree No. 35/2025/ND-CP dated February 25, 2025 of the Government, land allocation and lease are the functions and tasks of the Ministry of Agriculture and Environment.

Therefore, for the above question, the Ministry of Finance recommends that reader Le Van T. directly contact the Ministry of Agriculture and Environment for detailed instructions, ensuring rights in accordance with the provisions of law.

Thuận Hiền
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