Temporary solution to deal with the excessive increase in land use fees when converting agricultural land to residential land

This Resolution is expected to take effect from the date of signing until February 28, 2027.

The draft was developed by the Ministry of Finance and is being reviewed by the Ministry of Justice .

The resolution only applies to households and individuals; it does not regulate cases of conversion from purely agricultural land to residential land. Specifically, the draft is expected to only apply to cases of conversion of land use purpose to residential land from the following types of land: garden land, ponds, agricultural land in the same plot of land with residential land in a residential area but not yet recognized as residential land; garden land, ponds attached to residential land but the land user has divided the plot to transfer the rights, or the surveying unit has divided it into separate plots before July 1, 2004.

Also according to the draft, a new mechanism for calculating land use fees will be applied. Accordingly, the Government will stipulate a minimum collection rate framework and assign the Provincial People's Council to decide on specific collection rates in their localities.

The proposed collection rate is divided according to the land allocation limit as follows: for areas within the limit, the minimum collection rate is 30% of the land use fee according to current regulations. For areas exceeding the limit (but not exceeding 500m²), the minimum collection rate is 50% of the land use fee according to current regulations. For areas exceeding the limit by more than 500m², the collection rate is 100% of the land use fee.

Each household or individual is only entitled to this preferential policy once. Subsequent changes in land use purpose will require payment of 100% of the land use fee as prescribed.

The Resolution is a temporary solution, effective from the date of signing until February 28, 2027 to handle urgent issues while waiting for the Land Law (amended).

According to the Ministry of Finance, the purpose of limiting the preferential area to no more than 500 square meters is to support people's legitimate housing needs, while limiting speculation and the accumulation of large areas of agricultural land to profit from the policy.

MR. PHUONG

Source: https://www.sggp.org.vn/giai-phap-tinh-the-xu-ly-viec-tien-su-dung-dat-tang-qua-cao-khi-chuyen-dat-nong-nghiep-sang-dat-o-post812405.html