Knowledge base

A citizen asked the Ministry of Finance whether his mother's land plot - which since a 2020 inheritance split contains only perennial-crop land (CLN) and other annual-crop land (BHK), with no residential land - qualifies for the land-use-fee exemption/reduction under point c, clause 2, Article 10 of National Assembly Resolution No. 254/2025/QH15, given the family's plan to convert part of it to residential land to build a house. The tax authority replied that under point c, clause 2, Article 10 of Resolution 254/2025/QH15, the policy applies only where garden or pond land sits within the same plot as existing residential land, or where land originally was garden/pond land attached to residential land but was split off through a land-use-right transfer, or was surveyed and split into a separate plot by the cadastral agency before July 1, 2014. In those cases, the land use fee for converting to residential use is reduced as follows: a 30% cut on the gap between the fee calculated at residential land price and at agricultural land price, within the locality's residential land allocation limit; a 50% cut for area exceeding that limit but not more than one time the limit; and no reduction (100% of the gap payable) for area exceeding more than one time the limit. This preferential calculation applies only once, to one plot, per household or individual. Decree No. 50/2026/ND-CP (dated January 31, 2026) provides implementing detail: the preferential calculation under this rule may be applied only once per household/individual, on one plot of their choosing, even if they hold multiple eligible plots (including plots across different provinces). The counting of conversion instances and the applicable land allocation limit are determined from August 1, 2024. Because the mother's plot in this case currently consists only of CLN and BHK land with no residential land, whether it qualifies under point c, clause 2, Article 10 depends on the land's origin, the timing of the plot split, and the cadastral records - specifically, whether that plot was previously garden/pond land attached to residential land. The tax authority advised the citizen to contact the local one-stop administrative service unit or the competent land management authority directly for specific guidance on the required dossier, procedures, and an accurate determination of the financial obligation based on the actual land records.

A resident of Hung Yen province asked the Ministry of Finance how land use fees are calculated when a Land Use Right Certificate (LURC) is issued for encroached land under Article 139 of the 2024 Land Law. The specific question: if, before applying for the LURC on the violating area, the land user had already been recognized as having land use rights, or had been allocated land (or had received a transfer of state-allocated land for which a fee was paid) at an earlier point, should that already-recognized or already-allocated area be deducted when calculating the land use fee owed on the encroached portion. In response, the Tax authority (Sub-department 9, Hung Yen Provincial Tax Department) cited Point a, Clause 3, Article 139 of the 2024 Land Law and Point a, Clause 3, Article 11 of Decree 103/2024/ND-CP: for households and individuals who used land from October 15, 1993 to before July 1, 2004 and are now issued a residential-purpose LURC, the land use fee for the area within the local residential land allocation limit is the certified area within that limit, multiplied by the residential land price on the local price table, multiplied by 30 percent. However, the Tax authority did not directly answer whether previously recognized or allocated area should be deducted. The reply states that the Tax authority only receives an information transfer slip electronically from the land management agency to determine the financial obligation and issue a payment notice; determining the plot's location, allocation limit, and legal status - including whether previously recognized or allocated area should be netted out - is outside the Tax authority's jurisdiction. The inquirer was told to contact the land management agency directly for specific guidance. For SME owners or individuals holding land with an encroachment history, or currently applying for a certificate covering a previously unauthorized portion, the practical takeaway is that the final land use fee depends on figures the land registration office determines and transfers to the Tax authority, not on an independent Tax authority calculation. Businesses should work directly with the local land management agency to clarify any area deduction before receiving a payment notice from the Tax authority.

A real estate company operating since 2003 fully paid its land use fee obligation before July 1, 2014, calculated under the provincial land price table rather than detailed planning indicators such as land use coefficient, building density, or building height. In 2020 the company adjusted the project's detailed construction plan and received approval from the competent authority, but was not required to pay any additional land use fee at that time. The company now wants to transfer part of the project (an apartment block) and asked the Ministry of Finance whether it can rely on point b, clause 3, Article 2 of Circular 76/2014/TT-BTC, which exempts additional land use fee payment when a detailed construction plan changes. The Ministry of Finance did not give a direct yes-or-no answer. Instead it cited the relevant legal framework across different periods: clause 5, Article 14 of Decree 45/2014/ND-CP (amended by Decree 123/2017/ND-CP), clause 3, Article 10 of Circular 76/2014/TT-BTC (supplemented by Circular 10/2018/TT-BTC), the transitional provisions in Article 50 of Decree 103/2024/ND-CP (amended by Decree 291/2025/ND-CP), and the provincial People's Committee's responsibility to determine land financial obligations under Article 44 and clause 6, Article 48 of Decree 103/2024/ND-CP (amended by Decree 50/2026/ND-CP). The Ministry advised the company to work directly with local authorities, based on the specific project file, to have the obligation determined correctly before proceeding with the transfer. The key takeaway for real estate developers is that exemption from an additional land use fee upon a planning adjustment is not automatic - it must be confirmed case by case by local authorities based on each project's documentation, particularly before transferring a project or part of a project.

The National Assembly's Draft Law Portal (Dự thảo Online) lists a draft (amended) Land Law submitted by the Government. According to the information published, the draft is expected to be reviewed and passed by the 16th National Assembly at its 2nd session. The material collected from this source consists only of the title and procedural details (submitting agency and expected passage session) - it does not include the full text or specific provisions of the draft. As a result, it is not yet possible to assess how the changes would affect land-use rights, land rental costs, or the financial obligations of businesses and investors. Once the amended Land Law is passed by the National Assembly and the full text is published, it will be a major law affecting investment and land use by both domestic businesses and foreign investors, and this entry should be revisited and updated with fuller content at that time.

A taxpayer in Da Nang had their land use fee recalculated by the tax authority under Decree 50/2026/ND-CP and National Assembly Resolution 254/2025/QH15, and the result showed an overpayment that should be refunded. However, the tax official advised the taxpayer to wait, because the public online service portal does not yet have a dedicated procedure for filing a refund request in this specific situation. Responding to the inquiry, Tax Region 9 (Da Nang) cited point d, clause 2, Article 12 of Decree 50/2026/ND-CP: if a household or individual already paid the land use fee in full under the original tax notice, and the recalculated amount is lower, the difference is refunded by offsetting it against other land use fee or land rent obligations; if no such obligation remains, it is refunded in cash under state budget and tax management law. On the concrete procedure, the tax authority cited Circular 80/2021/TT-BTC (as amended by Circular 94/2025/TT-BTC): a taxpayer with an overpayment and no outstanding tax debt should submit a refund request using form 01/DNXLNT (with a power-of-attorney document if not filing in person) directly to the tax authority managing the collection, without waiting for a dedicated online-portal feature. This is practical guidance for households, individuals, and small businesses whose land use fees are being recalculated under the transitional rules of Resolution 254/2025/QH15 - they can proactively pursue a refund rather than waiting for the electronic system to catch up.

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.

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.

The Ministry of Finance clarifies land use fee exemption policies for resettlement project developers who develop land for state-mandated resettlement purposes (not for commercial housing). Under the 2024 Land Law (Article 118, clause 8), land allocated without land use fees applies to organizations using land to build housing for resettlement **under state projects**. For displaced persons, they pay land use fees from land clearance compensation funds (Article 111 of the 2024 Land Law). Exemption and reduction policies are set in Articles 18 and 19 of Decree 103/2024/ND-CP (amended by Decree 291/2025/ND-CP). The Ministry of Finance directs parties to contact the Ministry of Agriculture and Environment for detailed guidance on compensation and resettlement policies.

The Ministry of Finance clarified that the preferential land-use fee calculation under Point c, Clause 2, Article 10 of Resolution 254/2025/QH15 and Article 6 of Decree 50/2026/ND-CP applies once per household or individual who lawfully uses a plot whose origin is garden or pond land within the same residential plot, or garden/pond land attached to residential land. The question raised was whether persons who received land through inheritance (including substituted inheritance in the first line) or as a gift from a first-line heir qualify for this preferential rate. The Ministry directed the questioner to apply the relevant legal provisions to their specific circumstances without giving a direct yes or no answer. This reflects a practical ambiguity under Resolution 254: the policy applies once per chosen plot per household, and eligibility hinges on lawful land use rights, making case-by-case assessment necessary.

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.

The Ministry of Finance explained the difference between Decree 239/2025/ND-CP (amending Decree 31/2021/ND-CP on the Investment Law) and Decree 151/2025/ND-CP (Land Law) regarding which authority has the power to approve agreements for transferring land use rights to implement non-agricultural investment projects. Under Decree 239/2025, the approval authority was with the provincial People's Committee (UBND). Decree 151/2025 subsequently decentralized this authority to commune-level People's Committees (UBND cấp xã). However, from 31 January 2026, Decree 49/2026/ND-CP (guiding Resolution 254/2025/QH15) repealed Article 10 of Decree 151/2025 and reassigned the authority back to the provincial People's Committee under Article 14 of Decree 49/2026/ND-CP. The Ministry of Finance advised businesses to consult the relevant land management authority for specific guidance.

The Ministry of Finance clarified that the land use fee exemption/reduction for converting pond land to residential use under Article 10, Clause 2(c) of Resolution 254/2025/QH15 only applies to pond land situated within the same plot as an existing residential parcel with a house. If the pond plot is a separate parcel and not part of an existing residential lot, the exemption does not apply. Consequently, a family whose pond was allocated in 1955 as a separate parcel (not within the same residential plot) would not qualify for the land use fee exemption when converting that pond to residential use.