Waiting for instructions again.
Resolution 254 of the National Assembly and Decree 50 stipulate several mechanisms and policies to address difficulties and obstacles in the implementation of the Land Law, allowing for a reduction in land use fees when converting land to residential land. Specifically, for land within the permitted limit, people converting agricultural land to residential land only have to pay 30% of the land use fee, and for land exceeding the limit, they pay 50%. For cases where people converted land use and paid land use fees between August 1, 2024, and before January 1, 2026, they can request the tax authorities to recalculate the land use fee according to these regulations. If the recalculated land use fee is higher than the amount already paid, the land user must pay the remaining amount, plus late payment penalties. If the recalculated land use fee is lower than the amount already paid, the State will refund the difference. Citizens must submit their written requests to the integrated one-stop service center no later than January 1, 2027. This center will receive the applications and schedule a date for the results to be provided.
Despite the regulations, it is not easy for people who have already paid land use fees to request a recalculation from the tax authorities. Mr. Tran M.D ( Hanoi ) recounted that he holds the land use rights for plot number 71, map sheet number 48, P. Ward, Hanoi City, with an area of 100 m² of land for perennial crops. On November 24, 2025, he submitted an application to change the land use purpose to residential land for the aforementioned plot. He then received a notice from the Hanoi City Tax Department regarding the payment of financial obligations when changing the land use purpose. He paid all the registration fees for the house and land; non-agricultural land use tax and late payment penalties; and also paid 50% of the land use fee as stated in the notice. He has not yet paid the remaining 50% because he is waiting for a reduction in land use fees under the policy in Resolution 254, as he is eligible for the reduction. Since February 5, 2026, he has submitted a request to the People's Committee of the ward to recalculate land use fees, but the People's Committee of the ward suggested that he contact the Hanoi City Public Administration Service Center to submit his application and receive specific guidance. However, at the Center, he received the answer that the Hanoi City People's Committee has not yet issued the set of administrative procedures and processes for implementation, so the Public Administration Service Center does not have the basis to accept the application!
Recalculating land use fees for citizens is currently not possible due to the lack of specific guidelines on the processing procedure.
Photo: Dinh Son
Similarly, Mr. Tuan Anh (Hiep Hoa Ward, Quang Ninh Province) stated that in October 2025, he converted 200 m² of land used for perennial crops to residential land and paid 100% of the land use fee, amounting to 1.6 billion VND. However, after reviewing Resolution 254 and Decree 50, his family's case allowed him to choose a specific plot of land to re-determine the residential land area within the land use limit, so he chose that plot. Despite this, when he submitted his application to the ward's Public Administrative Service Center, the official replied that there was currently no processing procedure, so he should just "submit it," and that he didn't know when the recalculation would take place.
Don't let a "preferential" policy turn into "discriminatory" one.
In Ho Chi Minh City, ward leaders confirmed that although Resolution 254 has been issued and is in effect, there are no specific guidelines on the processing procedures for this type of application. Therefore, they can only receive applications but cannot resolve them. Furthermore, determining whether a household has already received the land use limit to recalculate land use fees is also a difficult problem, as the databases are not yet interconnected between provinces. "If people own land in Ho Chi Minh City, it's easy, but for those with land elsewhere, reviewing the situation to reduce taxes is a long story," said a ward leader in Ho Chi Minh City.
According to lawyer Nguyen Van Dinh of the Hanoi Bar Association, the procedure for recalculating land use fees can be considered part of the administrative procedure for requesting a change in land use purpose. Essentially, this is an adjustment of financial obligations arising from the completed land use purpose change procedure, and should not be separated into an independent administrative procedure to create additional procedures for citizens. In principle, during the administrative process, the state agency is entitled to request additional documents, and the person requesting the procedure also has the right to supplement the documents themselves. Therefore, in this case, submitting a written request for recalculating land use fees can be considered just one step in the administrative procedure for requesting a change in land use purpose. Consequently, the People's Committees of wards and communes can receive and process these requests according to the administrative procedure for changing land use purpose without waiting for higher authorities to issue internal procedures.
"These cases once again demonstrate that the operation of the grassroots level under the two-tiered local government model is still not truly smooth and effective. For the grassroots level directly handling land use conversion procedures, it is necessary to adhere to the principle that delays in issuing internal procedures by higher levels should not be considered a reason to refuse processing citizens' applications, especially in the context of central government regulations that are already very clear and specific. Regarding tax authorities, the Ministry of Finance and the Tax Department also need to issue guidelines to local tax agencies to temporarily suspend/not calculate late payment penalties for applications that have already submitted requests for recalculation of land use fees, similar to Mr. Tran M.D.'s case, to avoid double losses for citizens who are not at fault, did not intentionally delay payment, but are forced to wait for state agencies to complete the procedures," lawyer Nguyen Van Dinh suggested.
Dr. Pham Viet Thuan, Director of the Institute of Resource and Environmental Economics, acknowledged that in some localities, people have been refused service when carrying out this procedure, citing the reason that the integrated one-stop service center does not have the facilities to receive applications because the locality has not yet issued an internal procedure to handle the corresponding administrative procedure. This inconsistency in handling procedures among agencies has greatly affected the rights of citizens, as the regulation is only valid until the end of 2026; it also reduces the effectiveness of a inherently humane legal policy of the state. Therefore, it is essential for ministries and agencies to advise and develop Resolution 254 and Decree 50, providing guidance documents for 34 localities to implement this procedure according to Clause 2, Article 12 of Decree 50. On the local level, provincial People's Committees need to direct specialized agencies to urgently advise on and develop an internal procedure to handle the corresponding administrative procedure; Simultaneously, attention should be paid to guiding the People's Committees at the ward and commune levels, as well as the Public Administrative Service Centers, in carrying out the procedures.
Resolution 254 and Decree 50 allow for "retroactive" reductions in land use fees.
Resolution 254 and Decree 50/2026 stipulate: If the tax authority has not yet issued a notice for land use fee payment, the tax authority will calculate the land use fee as prescribed in Resolution 254. If the tax authority has issued a notice for land use fee payment but the citizen has not yet paid, the citizen may request a recalculation of the land use fee. If the tax authority has issued a notice for land use fee payment and the citizen has paid part or all of the land use fee as notified, they may request the tax authority to recalculate the land fee. If the recalculated land use fee is higher than the amount already paid, the citizen must pay the difference; if it is lower, the State will refund the difference. Decree 50 stipulates that the refund will be deducted from other obligations regarding land use fees and land rent of the citizen. If there are no other financial obligations, the refund will be in cash.
Source: https://thanhnien.vn/vat-va-tinh-lai-tien-su-dung-dat-185260424221746074.htm
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