Land-Use Levy Calculation for Garden-to-Residential Conversion: No Aggregation with Existing Residential Area
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The Ministry of Finance clarified how the local residential land-allocation quota applies under point c, clause 2, Article 10 of Resolution 254/2025/QH15 when a household wants to convert 200 sq m of garden land to residential land on a plot that already has 300 sq m of existing residential land. The local residential allocation quota is 200 sq m. The household asked whether the existing 300 sq m of residential land must be deducted when assessing the quota. The Ministry concluded that point c, clause 2, Article 10 of Resolution 254/2025/QH15 and clauses 1 and 2 of Article 6 of Decree 50/2026/ND-CP do not require aggregation of existing residential land. The 200 sq m being converted is assessed independently against the 200 sq m quota: 30% of the difference applies to the area within the quota, 50% for the area exceeding the quota by up to one quota-width, and 100% for anything beyond that. This concession is applied only once per household, on one plot of the household's choosing.
Ministry of Finance Guidance on Land-Use Levy Calculation — Garden to Residential Conversion (21 May 2026)
Specific scenario:
- Plot: 500 sq m total (300 sq m existing residential land + 200 sq m garden land).
- Local residential land-allocation quota: 200 sq m.
- Request: Convert the 200 sq m garden land to residential use.
- Question: Must the 300 sq m of existing residential land be deducted when determining the portion "within the quota"?
Legal basis:
- Point c, clause 2, Article 10 of Resolution 254/2025/QH15: Levy rate is 30% of the price difference for the area within the quota; 50% for the area exceeding the quota by up to one quota-width; 100% for the area exceeding one quota-width. Applicable only once per household, on one plot selected by the household.
- Clauses 1 and 2 and point c, clause 5 of Article 6 of Decree 50/2026/ND-CP: The residential land-allocation quota is the quota applicable to an individual in the locality at the time of the conversion decision (regardless of the number of household members); applies once per household, on one chosen plot.
Ministry of Finance conclusion: The regulations do not require aggregation of existing residential land area. Therefore, the 200 sq m of garden land to be converted is assessed independently against the 200 sq m quota:
- 200 sq m ≤ 200 sq m (quota) → the entire 200 sq m is subject to the 30% levy rate.
- The household does not need to include the existing 300 sq m of residential land in the calculation.
- This concession is available only once per household/individual, on one plot of their choosing.