Responding to questions about reducing land use fees when converting farm land to residential land

Xuyên Đông |

On the Ministry of Finance's Information Portal, the tax authority responded to the policy of reducing land use fees when converting farm land to residential land.

Base 2 Tax Department of Tuyen Quang province said that it had just received a question on the Ministry of Finance Electronic Information Portal from Ms. T.L.L.

Ms. T.L.L questioned the calculation of land use fees when changing land use purposes according to Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly.

According to the content of the question, Ms. L mentioned the case of Mr. A buying back two adjacent land plots originating from the tea farm land of Son Duong district (old), Tuyen Quang province, handed over in 1986. The first plot with an area of 80 m2 was separated from 450 m2 of Mr. B; the second plot with an area of 50 m2 of Ms. C. Then Mr. A merged into a land plot of 130 m2 and was granted a certificate of land use rights for perennial crops (agricultural land in residential areas) in 2020.

Also in 2020, Mr. A transferred the 130 m2 land plot to Ms. T.L.L. By December 2025, Ms. L was allowed by the commune government to change the land use purpose from perennial crop land to residential land in rural areas and had paid 100% of the land use fee.

She asked whether her case would be reduced land use fees according to Resolution No. 254/2025/QH15 or not?

Regarding this issue, the Base Tax Department of 2 provinces of Tuyen Quang has the following opinions:

Point c, Clause 2, Article 10 of Resolution No. 254/2025/QH15 stipulates the exemption and reduction of land use fees, land rent and payment of land use fees and land rent when changing land use purposes.

In which, cases of garden land, pond land, agricultural land in the same land plot with residential land are determined when recognizing land use rights and changing the land use purpose to residential land; land originating from garden land, pond land attached to residential land but the land user separates it to transfer land use rights;

Or land originating from garden or pond land attached to residential land that the surveying unit when measuring and drawing cadastral maps before July 1, 2014 has self-measured and separated into separate plots into residential land, the land use fee is calculated at a rate equal to 30% of the difference between the land use fee calculated according to residential land price and the land use fee calculated according to agricultural land price for the area within the limit; 50% of the difference for the area exceeding the limit but not exceeding 01 time the residential land allocation limit in the locality; and 100% of the difference for the part exceeding 01 time the limit. This collection level is only applied once to one household or individual on one land plot.

Based on the above regulations, the applicable cases include: garden land, pond land, agricultural land in the same land plot with residential land determined when recognizing land use rights; land originating from garden land, pond land attached to residential land but land users separate it to transfer land use rights; or land originating from garden land, pond land attached to residential land measured and separated into separate plots by the surveying unit before July 1, 2014.

Regarding the case of Ms. T.L.L, Base 2 Tax Department of Tuyen Quang province requests her to contact the Economic Department of the commune where the land plot is located to accurately determine whether the dossier is eligible to apply land use fees according to the provisions of point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 or not.

Xuyên Đông
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