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Land use conversion tax is too high: Research on amending and supplementing the 2024 Land Law

On the afternoon of July 2, in Hanoi, the Ministry of Finance held a regular press conference for the second quarter of 2025.

Báo Sài Gòn Giải phóngBáo Sài Gòn Giải phóng02/07/2025

Chairing the press conference, Deputy Minister of Finance Nguyen Duc Chi provided an overview of the ministry's operations in the first 6 months of the year and key tasks in the coming time. At the same time, representatives of the ministry's specialized units answered questions from the press on issues of public concern.

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Deputy Minister of Finance Nguyen Duc Chi chaired the press conference.

Responding to the fact that the tax that people have to pay when converting land use from agricultural land to residential land has increased too much (from 250% to 300% compared to before the land price list took effect), making many people unable to pay, Ms. Nguyen Thi Thoa, Deputy Director of the Department of Public Asset Management, said that the Ministry of Finance has received the feedback and has sent documents to localities to grasp the situation, from which to recommend competent authorities to resolve the matter.

According to Ms. Thoa, this is also one of the problems when implementing the 2024 Land Law. Because this is mainly land without documents, encroached land or land granted without the previous authority of the granting agencies to cadres, workers or cooperative members.

According to the law, this type of land will have to be recovered or people will have to pay land use quotas according to the provisions of Decree 103/2024/ND-CP (Decree 103) of the Government issued on July 30, 2024, regulating land use fees and land rents.

Although Decree 103 stipulates that land rent and land use limits will be reduced by up to 50% compared to the current legal price. However, the 2024 Land Law stipulates that local authorities will consider proactively issuing land price lists to ensure that they are close to the actual market price. Therefore, when the land price lists of many localities are announced, the conversion of land use purposes will also increase.

“According to Article 156 of the 2024 Land Law, land users must pay land use fees when converting land use purposes. At that time, we also anticipate that land prices will increase, and conversion taxes will also increase. We have sent documents to localities. When localities report back, we will synthesize and re-evaluate to propose appropriate solutions,” Ms. Thoa informed.

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Ms. Nguyen Thi Thoa, Deputy Director of the Department of Public Asset Management (Ministry of Finance) answered questions from the press.

According to Ms. Thoa, the Ministry of Agriculture and Environment is summarizing 3 years of implementing Resolution 18-NQ/TW dated June 16, 2022 on continuing to innovate and improve institutions and policies, improving the effectiveness and efficiency of land management and use, creating momentum to turn our country into a high-income developed country and 1 year of implementing the 2024 Land Law, it is expected that there will be amendments and supplements to this resolution and the 2024 Land Law.

Based on feedback and assessments from localities, the Ministry of Finance will coordinate with the Ministry of Agriculture and Environment to provide comments and possibly amend and supplement the 2024 Land Law.

“In the immediate future, while the 2024 Land Law has not been amended, we plan to propose amendments and adjustments to Decree 103. Specifically, for land previously used as ponds, gardens, and farms, which have been processed but are now still in backlog and are generally referred to as agricultural land, we are proposing to collect only 50% of the amount when converting between two purposes of use.”

Source: https://www.sggp.org.vn/thue-chuyen-doi-muc-dich-su-dung-dat-qua-cao-nghien-cuu-sua-doi-bo-sung-luat-dat-dai-2024-post802190.html


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