High fee for converting agricultural land to residential land, what does the Ministry of Finance say?

(CLO) The Ministry of Finance has just issued a document responding to the petition of voters in Ho Chi Minh City on a number of issues related to the conversion of land use purposes from agricultural land to residential land.

Previously, voters in Ho Chi Minh City sent a petition about high land use fees, many households and individuals in difficult circumstances when dividing plots of land and building houses for their children but do not have enough financial capacity to change the land use purpose to residential land.

Therefore, voters recommend considering appropriate land use conversion prices; researching personal income tax reduction when transferring real estate, especially having exemption and reduction policies for households in difficult circumstances.

At the same time, voters in Ho Chi Minh City proposed considering a mechanism to allow poor households to pay for land use conversion in installments over a long period, in order to create conditions for people to stabilize their housing and feel secure in working and producing.

The Ministry of Finance has just issued a document responding to the petition of voters in Ho Chi Minh City on a number of issues related to the conversion of land use purposes from agricultural land to residential land. (Illustration photo/CD)

Regarding this content, the Ministry of Finance said that the calculation of land use fees when converting land use purpose to residential land is clearly regulated in the 2024 Land Law.

Specifically, Clause 1, Article 156 of the 2024 Land Law stipulates: When changing the land use purpose, the land user must pay land use fees and land rent in one payment for the entire rental period equal to the difference between the land use fees and land rent of the land type after the purpose change and the land use fees and land rent of the land type before the purpose change.

Article 8 of Decree 103/2024/ND-CP dated July 30, 2024 stipulates the calculation of land use fees when households and individuals change land use purposes, according to the principles in Clause 1, Article 156 of the 2024 Land Law.

Accordingly, households and individuals changing the purpose of land use from agricultural land to residential land must pay land use fees equal to the difference between the price of residential land and the price of agricultural land at the time of the decision allowing the change of land use purpose.

Recently, the Ministry of Finance has received comments and recommendations from localities and press reports on land prices on the new land price list under the 2024 Land Law in some localities, which have increased dramatically compared to the old price list (according to the 2013 Land Law, in which residential land prices have increased too much compared to agricultural land prices).

Therefore, when the State allows the conversion of land use purpose from agricultural land to residential land, people have to pay land use fees that are too high compared to before and there is a proposal to adjust the land use fee collection level in this case to reduce financial obligations for people.

Based on the proposal to adjust the land use fee in this case to reduce the burden on people, the Ministry of Finance has developed and is finalizing a draft Resolution of the Government on removing and handling difficulties related to calculating land use fees for households and individuals when changing the purpose of use from agricultural land to residential land (after receiving appraisal opinions from the Ministry of Justice ) to submit to the Government for consideration and decision.

Regarding the proposal to allow poor households to pay for land use purpose conversion in long-term installments, the Ministry of Finance said that the current law on land use fees has many preferential provisions to reduce the burden on people in difficult circumstances and policy families.

Specifically, cases of exemption or reduction of land use fees (according to Articles 18 and 19 of Decree 103/2024/ND-CP): Exemption of land use fees to implement housing and residential land policies for war invalids or sick soldiers who are unable to work, and families of martyrs who no longer have the main labor force.

Exemption or reduction of land use fees for the poor, households or individuals of ethnic minorities; exemption of land use fees for residential land for people who have to relocate when the State reclaims land due to risks threatening human life.

Exemption and reduction of land use fees for residential land within the residential land allocation limit (including land allocation, change of land use purpose, granting of certificates to current land users) for households and people with meritorious services to the revolution who are eligible for exemption and reduction of land use fees according to the provisions of law on people with meritorious services...

Regarding the proposal to allow poor households to pay for land use purpose conversion in installments over a long period, the Ministry of Finance stated that Decree 103/2024/ND-CP and Decree 101/2024/ND-CP stipulate that land users are allowed to owe land use fees when issuing the first Certificate of land use rights and assets attached to land (if needed) when issuing the first Certificate of land use rights and assets attached to land and provide specific regulations on the order and procedures for recording land use fees.

In addition, current laws also have policies to exempt and reduce land use fees for poor households, policy families and truly difficult cases.

Source: https://congluan.vn/phi-chuyen-doi-dat-nong-nghiep-sang-dat-o-cao-bo-tai-chinh-noi-gi-10319967.html