As previously reported, the Ministry of Finance has issued a document covering three cases of land use purpose conversion from agricultural land originating from garden and pond land attached to residential land, where a reduced land use fee of 30% of the difference between the land value before and after conversion applies.
According to the document, residents converting land use from agricultural land that was originally garden and pond land attached to residential land will have their burden reduced by up to 70% of the land use fee compared to the old regulation (which required paying 100% of the land use fee).
A reader asks: If land is separated from a plot that includes garden, pond, and residential land, but the separation occurs after July 1, 2014, is it still eligible for the land use fee reduction?
Legal response:
Regarding the reduction of land use fees for households and individuals when converting land use purpose from garden, pond, or agricultural land to residential land, as stipulated in point c, clause 2, Article 10 of Resolution No. 254 of 2025 (which provides mechanisms and policies to address difficulties and obstacles in implementing the Land Law on land use fees and land rents), and clause 3, Article 6 of Decree No. 50 of 2026, the guidance is as follows:
The calculation of the number of land use purpose conversions, the determination of residential land allocation limits, and the selection of the land plot for conversion to apply the reduction are based on the date of August 1, 2024 (the effective date of the 2024 Land Law).
Clause 2, Article 12 of the aforementioned Decree also stipulates transitional handling for cases where households or individuals have received a decision from a competent state authority allowing land use purpose conversion from August 1, 2024, to before January 1, 2026 (the effective date of Resolution No. 254), so that these cases can have their land use fees calculated or recalculated.
It should be noted that households and individuals in the above cases must submit a written request for calculation or recalculation of land use fees no later than January 1, 2027. If the request is submitted after January 1, 2027, it will not be processed.
Thus, the reduction in land use fees under the aforementioned provision of Resolution No. 254 only applies to cases where a competent state authority has issued a decision permitting land use purpose conversion from August 1, 2024.
For land use certificates issued to residents before July 1, 2004, that include garden, pond, and residential land but do not clearly specify the residential land area, the area will now be re-determined.
