Ministry of Finance clarifies land use fee exemption when converting purpose of land area added after boundary re-survey
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Based on:254/2025/QH15 - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
A reader in Tay Ninh asked the Ministry of Finance about the case of Mrs. H.T.T.M: in 1997 she was granted a land use right certificate for 36 sqm of residential land; in 2019 a re-survey found the plot had grown by 28 sqm (classified as perennial-crop agricultural land) due to boundary shifts across successive surveys, with the boundary now clear, stable and undisputed by neighbors. The district issued a new certificate covering 64 sqm total (36 sqm residential, 28 sqm perennial-crop land). Mrs. M is now applying to convert the additional 28 sqm from agricultural to residential use, and the reader asked whether this qualifies for land use fee exemption/reduction under Point c, Clause 2, Article 10 of National Assembly Resolution 254/2025/QH15. In response, the tax authority quoted the provision verbatim: when converting garden, pond, or agricultural land within the same plot as land already recognized as residential, or land separated into its own plot before 1 July 2014 through self-surveying before official cadastral mapping, into residential use, the land use fee is charged at 30% of the difference between the residential-price and agricultural-price valuations for the area within the local land allocation limit; 50% for the area exceeding the limit but not more than one time the limit; and 100% for the area exceeding one time the limit. This rate applies only once per household or individual per land plot. Based on that provision, the tax office (Tax Sub-Department No. 9 of Tay Ninh province) did not directly confirm whether Mrs. M's case qualifies, and instead advised the reader to contact the relevant local agency for guidance based on the land user's actual file. This is a case-specific application guidance letter, not a new legal instrument.
Question
A reader asked about land use fee exemption/reduction policy for the case of Mrs. H.T.T.M (a local resident):
- In 1997, Mrs. H.T.T.M was first granted a land use right certificate by the Hoa Thanh district People's Committee, Tay Ninh province, for plot No. 1945, map sheet No. 6 (cadastral records under Directive 299/TTg), area 36 sqm, designated as residential land (located in Long Thanh Bac commune, Hoa Thanh district, now Long Thoi quarter, Long Hoa ward, Hoa Thanh town, Tay Ninh province).
- In 2019, a re-survey of the plot's actual condition found the area had increased by 28 sqm (classified as perennial-crop agricultural land). The increase was due to boundary changes across successive survey periods; the current land use boundary is clear, stable, and not disputed with adjacent households.
- The district People's Committee re-issued a new land use right certificate to Mrs. M for plot No. 86, map sheet No. 7, with a total area of 64.0 sqm, comprising: 36.0 sqm of urban residential land (origin: recognition of land use rights equivalent to land allocation with land use fee payment) and 28.0 sqm of perennial-crop land (origin: recognition of land use rights equivalent to land allocation without land use fee payment).
- Mrs. M is now applying to convert the additional 28.0 sqm from perennial-crop land to urban residential land in order to consolidate its use.
Question: does an application to convert land use purpose for an area added through boundary re-survey, as in Mrs. M's case, qualify for consideration of land use fee exemption/reduction under Point c, Clause 2, Article 10 of National Assembly Resolution No. 254/2025/QH15?
Answer
Pursuant to Point c, Clause 2, Article 10 of National Assembly Resolution No. 254/2025/QH15 on certain mechanisms and policies to remove difficulties and obstacles in implementing the Land Law:
«Article 10. Exemption, reduction of land use fees and land rent; payment of land use fees and land rent when converting land use purpose.
- When converting land use purpose as specified at points b, c, d, dd, e and g, Clause 1, Article 121 of the Land Law, the land user must pay land use fees and land rent as follows:
c) For garden land, pond land, or agricultural land within the same plot as land already recognized as residential land at the time land use rights were recognized, converted to residential use; or land originally garden/pond land attached to residential land but separated by the land user to transfer land use rights, or separated into its own plot by a surveying unit that self-surveyed and mapped it before 1 July 2014, then converted to residential use - the land use fee is calculated at the following rates: 30% of the difference between the land use fee calculated at the residential land price and the land use fee calculated at the agricultural land price at the time of the decision permitting the change of land use purpose (hereafter the «difference») for the converted area within the local residential land allocation limit; 50% of the difference for the area exceeding the limit but not exceeding one time the local allocation limit; 100% of the difference for the area exceeding one time the local allocation limit. This land use fee rate is applied only once per household or individual (calculated per single land plot).»
Based on the above provision, the tax authority advised the reader to contact the relevant local agency to receive guidance and have the case resolved according to the land user's actual file. Tax Sub-Department No. 9 of Tay Ninh province informed the reader accordingly, for compliance with the regulation.
Editorial note
The original response quotes the statutory provision in full but does not directly conclude "yes" or "no" for Mrs. H.T.T.M's specific case; the citizen is told to contact the local tax authority for a case-by-case determination. Additionally, the sign-off line of the scanned answer names the reader as "Nguyen Hieu", which does not match the name in the original question ("Mrs. H.T.T.M") - this may be a source mismatch or a shared response template; the legal content (quotation of Article 10, Resolution 254/2025/QH15) has been faithfully transcribed from the scan regardless.