Land Use Fee Exemption/Reduction When Converting Garden, Pond, and Agricultural Land to Residential Land under Resolution 254/2025/QH15
RegHub explainer by New MarketerLast updated:
Based on:Nghị quyết 254/2025/QH15; Nghị định 50/2026/NĐ-CP - 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.
The Dong Thap tax authority provided guidance on land use fees when converting 66 sqm of perennial crop land (CLN) to urban residential land (ODT). Applying Article 10(2)(c) of **Resolution 254/2025/QH15** and Article 6 of **Decree 50/2026/ND-CP**: garden and pond land on the same plot as residential land, when converted to residential use, qualifies for preferential rates. The rates are: **30%** of the difference between residential and agricultural land use fees for the area within the local residential allocation limit; **50%** for the area exceeding the limit by up to one additional limit; **100%** for the area exceeding two times the limit. This policy applies **only once** per household/individual, on **one plot** of their choosing. Households must submit an application at the one-stop service counter **before 1 January 2027** to qualify. Land prices are calculated using the official land price schedule at the time of the conversion approval decision.
Guidance on Land Use Fees for Converting Agricultural Land to Urban Residential Use
Source: Dong Thap Tax Base 1, Q&A dated 20 May 2026
Situation
A household received a gift of 398 sqm of land (of which 200 sqm is urban residential land ODT with a land use rights certificate since 2013) and now wishes to convert an additional 66 sqm of perennial crop land (CLN) to urban residential land (ODT) for house construction.
Legal Basis
- Article 10(2)(c) of Resolution No. 254/2025/QH15
- Article 6 and Article 12(2) of Decree No. 50/2026/ND-CP dated 31 January 2026
Land Use Fee Rates
For garden, pond, or agricultural land on the same plot as residential land when converting to residential use:
- 30% of the difference (between residential and agricultural land prices) for the area within the local residential allocation limit
- 50% of the difference for the area exceeding the limit by up to one additional limit
- 100% of the difference for the area exceeding the limit by more than one additional limit
Conditions for Application
- Applies only once per household/individual
- Applies to only one plot of the household's choosing
- Counted from 1 August 2024 when determining the number of conversions
- Households with multiple plots across multiple provinces may only select one plot
Application Procedure (Article 12(2)(e) of Decree 50/2026)
- Submit application at the one-stop service counter before 1 January 2027
- The one-stop counter forwards to the commune-level People's Committee to confirm the allocation limit, then transfers information to the tax authority
- The tax authority calculates and issues a land use fee payment notice
Note: Applications submitted on or after 1 January 2027 will not qualify for this preferential policy.