What are the preferential land use fees for converting garden land to residential land?

SKĐS - Households and individuals who convert garden land or agricultural land within the same plot containing residential land to residential land may be eligible for preferential land use fee rates according to Resolution No. 254/2025/QH15. However, this policy can only be applied once to a selected plot of land.

At the end of 2025, Mr. and Mrs. Pham Hung Cuong ( Dong Thap ) received 398 m² of land as a gift from their parents, including 200 m² of urban residential land and the remainder being land for perennial crops. The land plot had been granted a Certificate of Land Use Rights in 2013.

Currently, Mr. Cuong's family needs to convert an additional 66 m² of land previously used for perennial crops to urban residential land for building a house. He is wondering whether this land conversion area falls under the cases eligible for exemption or reduction of land use fees according to Resolution No. 254/2025/QH15 of the National Assembly .

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In response to this issue, the Tax Department of Dong Thap province stated that the calculation of land use fees when converting land use from agricultural land to residential land is currently carried out according to the regulations in point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 and Government Decree No. 50/2026/ND-CP.

According to regulations, in cases where garden land, pond land, or agricultural land is located within the same plot as residential land as determined during the land use right recognition process, preferential land use fees will be applied when the land is converted to residential land. Specifically, for the converted area within the local residential land allocation limit, the land user only has to pay 30% of the difference between the land use fee calculated based on residential land prices and the land use fee calculated based on agricultural land prices.

For areas exceeding the land allocation limit but not more than once the residential land allocation limit, the fee is 50% of the difference. If the area exceeds once the residential land allocation limit, 100% of the difference must be paid as per regulations.

However, this preferential policy is only applied once to each household or individual and is calculated based on one plot of land chosen by the land user.

Decree No. 50/2026/ND-CP also clearly stipulates that if a household or individual owns multiple plots of land in one or more different localities that are permitted to change land use purposes, they may only choose one plot of land to apply the preferential land use fee policy. The land user must commit to this in the application for changing land use purposes and is legally responsible for their commitment.

If authorities discover that a land user has already benefited from preferential policies but continues to request their application to another plot of land, the tax authorities will recalculate the land use fee at 100% of the difference between the residential land price and the agricultural land price. In addition, the land user must also pay an amount equivalent to the late payment penalty as stipulated by tax management laws.

Furthermore, Decree No. 50/2026/ND-CP also stipulates that the calculation of the number of times land use purposes are changed, the determination of land allocation limits for residential land, and the selection of land parcels to apply preferential policies will be calculated from August 1, 2024.

For cases where the state agency has permitted the change of land use purpose between August 1, 2024, and before January 1, 2026, but the land use fee has not been paid or has not been fully paid, people can request the tax authority to recalculate the land use fee according to the new policy. Land users must submit a written request for recalculation or recalculation of the land use fee before January 1, 2027. After this date, the preferential policy under the transitional regulations will no longer apply.

According to the Dong Thap Provincial Tax Department, if Mr. Pham Hung Cuong's case fully meets the conditions under Resolution No. 254/2025/QH15 and Decree No. 50/2026/ND-CP, he will be considered for the application of preferential land use fee rates when changing land use purposes.

After receiving all the necessary documents from the commune-level People's Committee, the tax authority will calculate the land use fee and issue a payment notice in accordance with current regulations.

Source: https://suckhoedoisong.vn/chuyen-dat-vuon-sang-dat-o-duoc-tinh-tien-su-dung-dat-uu-dai-ra-sao-169260525143227061.htm