Land Use Fee Calculation When Converting Garden Land to Residential Use: How Is the Land Quota Applied?
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Based on:Nghị quyết 245 của Quốc hội; Nghị định 50/2026/NĐ-CP; Nghị định 24/2025/NĐ-CP - Ministry of Finance
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The Ministry of Finance clarified how to calculate the land use fee when converting land use purpose from perennial crop land to residential land, based on National Assembly Resolution 245 and Government Decree 50/2026/ND-CP. Under the regulations, when calculating the land use fee for the portion within the residential land allocation quota: previously recognized residential land area is deducted from the quota to determine the remaining within-quota area. Applied to the scenario: a 667 m² parcel comprising 300 m² of recognized residential land and 367 m² of perennial crop land; local residential land allocation quota is 200 m²; the owner now seeks to convert 200 m² of crop land. Since the existing 300 m² recognized residential area already exceeds the 200 m² quota, the full 200 m² being converted will be charged at the above-quota rate (i.e., 100% of land price, no 30% preferential rate). Specific confirmation should be sought from the Hai Phong Provincial Tax Department.
Ministry of Finance Guidance on Land Use Fee Calculation for Land Use Purpose Conversion to Residential
Scenario
- Total parcel area: 667 m²
- Previously recognized: 300 m² residential land + 367 m² perennial crop land (same parcel)
- Conversion requested: additional 200 m² of perennial crop land to residential use
- Local residential land allocation quota: 200 m²
- Question: Does the 200 m² conversion qualify for the within-quota rate (30%)?
Legal Basis
- Article 11(1) and (2), Decree 24/2025/ND-CP dated 11 February 2025
- National Assembly Resolution 245
- Decree 50/2026/ND-CP on resolving difficulties in the implementation of the Land Law
Quota Application Principle
When determining the within-quota portion eligible for the preferential collection rate (30%), the tax authority must deduct previously recognized residential land area from the quota.
Applied to the Specific Scenario
- Residential land allocation quota: 200 m²
- Previously recognized residential land: 300 m² (already exceeds quota)
- Remaining within-quota area = 200 - 300 = negative (no remaining within-quota allowance)
- Conclusion: The full 200 m² being converted is charged at the above-quota rate (100% of land price at new intended use)
Process
- Submit information transfer form to tax authority for land use fee calculation and potential reduction decision
- Contact Hai Phong Provincial Tax Department for specific guidance
Note
If the land user qualifies for a reduction in land use fees under applicable regulations, the tax authority will determine and decide the reduction amount accordingly.