Land use conversion tax increased
After receiving the tax notice for changing the purpose of land use of her family, Ms. Tran Van Anh in Hung Loc ward (Vinh city) had to exclaim "my family was shocked". Ms. Van Anh shared on her personal Facebook page that due to concerns about tax increases, her family submitted the application for changing the purpose of land use on May 16 (when the old land price list was being applied), but for some reasons, it was not until May 19 that the application was received and when it was transferred to the Tax Authority in June, that Decision No. 18/2025/QD-UB of the Provincial People's Committee dated May 21, 2025 amending and supplementing Decision No. 45/2019/QD-UB on promulgating the land price list in Cua Lo town (old) and Decision No. 57/2019/QD-UBND on promulgating the Land Price List in Vinh city for the period 2019 - 2024 took effect.
According to Ms. Van Anh, the price after changing the land use purpose is 15 million VND/ m2 ; the family registered to change 300m2 of garden land to residential land, so the land use purpose change tax and registration fee were calculated by the Tax Department to be a total of 4.497 billion VND. The above financial obligation not only shocked Ms. Van Anh but also her whole family!
Mr. Vo Hong Hai - Deputy Chief of Office of Vinh City People's Committee, in charge of Public Administration Service Center shared: Since applying the new land price list, this is not the only case. Most recently, in June, a family of 3 brothers in Hung Hoa commune (Vinh city) had land granted before 1980, built a house and now wanted to change the purpose to separate the title from the parents for the brothers. Initially, the family planned to spend about 1.4 billion VND to change the purpose according to the old price list, but when applying the new price list, it was nearly 11 billion VND, 9 times more.
Similarly, another case in Phuc Tho commune also filed a dossier to change the purpose of use of nearly 500 square meters of parents' garden land to residential land, and was "shocked" when the tax for changing the purpose amounted to more than 6 billion VND.
A representative of the Vinh City Public Administration Service Center also said that since the new price list was applied, the number of land use conversion applications at the Center has decreased. However, because there are only a few days left before the two-level local government model officially comes into operation, many people still rush to submit administrative documents.
Talking to us, Mr. Nguyen Cong Thanh - Director of the Provincial Land Use Registration Office said: This is what the Department of Natural Resources and Environment (now the Department of Agriculture and Environment) has clearly stated in the propaganda and dissemination campaigns of the 2024 Land Law and Decree 103/2024/ND-CP on land use fees and land rents. Therefore, when the number of people in Vinh city and surrounding areas welcomed the change and rushed to do the procedures to change the purpose, the Provincial Land Registration Office also directed the branches to try to receive the documents to resolve for the people.
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Learning more, we learned that compared to before, Decree 103/2024/ND-CP on land use fees and land rent has changed, instead of paying 45 - 50% of land use fees, now when changing the purpose, 100% of land use fees must be paid. The land price list for the period 2019-2024 is quite low, now the new land price list updates the market price in an upward direction, the new tax rate makes many people shocked.
For example, according to research, some roads and locations in Hung Loc ward or Nghi Duc ward, Nghi Phong commune, if previously, the old land price list only fluctuated from 3 - 5 million VND/ m2 or at most only 5-7 million VND/ m2 , but now it has skyrocketed to 17-20 million VND, even over 40 million VND/ m2 !
Representatives of the Department of Agriculture and Environment of some districts and towns also said that in some locations, land prices have increased dozens of times, so when changing the purpose, financial obligations increase dozens of times. Although people and businesses still have opinions, the regulations on land price lists have come into effect, so the Tax Department must apply them and people who want to change the purpose of use must comply.
"Reasonable and emotional" solution?
The reason why many people are concerned is because previously, according to the provisions of the Law on Land Use Conversion Tax and the Civil Code, when parents bequeath, donate, or divide land plots to their children, they are exempted from or have their land use conversion fees reduced and only have to pay the registration fee. However, currently, according to the Land Law and Article 8, Decree 103/2024/ND-CP on land use fees and land rent, the above provisions no longer exist.
Instead, in Section 2, Articles 17, 18 and 19 of Decree 103/2024/ND-CP on exemption and reduction of land use fees are only applied to cases of land allocation, change of land use purpose in border areas, islands; areas with special difficulties or land allocation for social housing projects, people with meritorious services to the revolution..., with reductions of 50% to 20% of land use fees respectively...
Up to this point, Decree No. 103/2024/ND-CP does not have any cases where parents in urban or delta areas give or give to their children, or change the purpose from other land to residential land, and are exempted from or have their land use fees reduced.
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Obviously, in just a short time, land prices have increased too high and parents have to pay high conversion tax to change the land use purpose from garden land to residential land to separate plots for their children, causing difficulties for people, requiring a "reasonable and sympathetic" solution.
Through the investigation of the reception and processing of land records in Vinh City, it is clear that there is currently confusion as some departments, offices, wards and communes apply different time frames for the new price list. Some departments and offices explain that from May 9, 2025 according to Resolution 03/2025/NQHD of the Provincial People's Council takes effect. However, according to the Tax Department of Area X, Vinh City applies the date of May 21, 2025, which is the time when Decision No. 18/2025/QD-UB of the Provincial People's Committee detailing the land price list in Vinh City officially takes effect. Records submitted before May 21, 2025 apply the old land price list, unless otherwise specified.
According to the leader of the Provincial Land Registration Office, in case citizens are subject to excessively high land use conversion taxes as above, citizens can stop converting land use purposes and the land previously allocated is still owned by their parents. Families can give or give to their children through civil agreements and wait until conditions are met to complete the procedures to convert the purpose from garden land or other land to residential land to build houses, transfer...
In addition, according to the information we know, after Decree 103/2024/ND-CP was issued, due to some shortcomings, including the regulation on collecting 100% of land use fees when converting the purpose to residential land, ministries, branches and localities have proposed that the Government consider amending this Decree and will return to the previous conversion rate of 50%. The decision-making authority belongs to the Government.
On the other hand, regarding the land price list in Nghe An province, although Resolution No. 03/2025/NQ-HDND amending and supplementing Resolution No. 19/2019/NQ-HDND of the Provincial People's Council approved the land price list in Nghe An for the period 2019-2024, the new land price list was approved, in which some areas and locations were adjusted higher than before. Currently, Resolution No. 03/2025/NQ-HD-ND of the Provincial People's Council has come into effect. However, currently, according to the 2024 Land Law, the land price list in each province will be adjusted and updated annually by the province. It is known that the Provincial People's Committee is directing districts, towns and Vinh City People's Committee to direct wards and communes (and new wards after July 1, 2025) to survey and collect land price lists for 2026. If any area or locality has any shortcomings and is requested by people and localities, it will also be submitted for consideration and adjustment accordingly.
Source: https://baonghean.vn/nhieu-ho-dan-o-nghe-an-soc-voi-thue-chuyen-muc-dich-su-dung-dat-moi-10300294.html
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