Guidance on Land Use Fee Calculation for Converting Garden Land to Residential Land under Resolution 254/2025/QH15
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The Quang Ninh Tax Department provided guidance on calculating land use fees when converting 152 sqm of garden land to residential use, in a case where the current owner purchased an entire plot comprising 300 sqm of residential land (previously granted within quota limits to the former owner) and 152 sqm of garden land. The Department of Economics, Infrastructure and Urban Affairs determined that of the 152 sqm, the first 120 sqm is assessed at 30% (first-time within-quota rate) and the remaining 32 sqm at 50% (one-time-over-quota rate). Under Article 5 of Resolution 254/2025/QH15 (land use fee refund) and Decree 43/2014/ND-CP (residential land quotas): Since the 300 sqm residential quota was already fully used for this plot under the previous owner, the conversion of the garden portion by the current owner is assessed under the over-quota rate framework. The tax office is required to issue a land use fee notice within 5 working days of receiving the information transfer form from the land management authority.
Land Use Fee Calculation for Garden-to-Residential Land Conversion
Issuing Authority: Quang Ninh Provincial Tax Department Situation: A plot comprising 300 sqm residential land (GCN granted within-quota to previous owner, Mr. A) and 152 sqm garden land. The current owner purchased the full plot and applied to convert the 152 sqm garden land to residential use.
Determination by the Economics, Infrastructure and Urban Affairs Department
For the 152 sqm conversion:
- First 120 sqm: Assessed at 30% (within first-time quota rate)
- Remaining 32 sqm: Assessed at 50% (one-time over-quota rate)
Legal Basis
- Resolution 254/2025/QH15 on land use fee refunds.
- Decree 43/2014/ND-CP on residential land quota limits.
- Procedural rule: Tax authority must issue the land use fee notice within 5 working days of receiving the information transfer form.
Quota Determination Principle
Since the previous owner Mr. A was granted a GCN for 300 sqm of residential land within-quota, the residential quota for this plot has been fully utilized. When the current owner seeks to convert the remaining 152 sqm garden land, the quota assessment must account for the 300 sqm already granted. Whether any additional within-quota allowance remains depends on the local residential land quota limit.
Outstanding Issue
The tax office indicated uncertainty about quota calculation - this is the cause of the delay. The applicant should:
- Contact Quang Ninh Tax Office No. 5 to clarify the calculation.
- Request the tax authority to issue the notice within the required 5-working-day timeframe.