Calculating land use fees when converting agricultural land to residential land according to new regulations

The Government issued Decree No. 50/2026/ND-CP (This Decree takes effect from January 31, 2026) detailing a number of articles of Resolution No. 254/2025/QH15 dated December 11, 2025 of the National Assembly stipulating a number of mechanisms and policies to remove difficulties and obstacles in organizing the implementation of the Land Law on land use fees and land rents.

In which, Decree No. 50/2026/ND-CP stipulates the calculation of land use fees for households and individuals when converting land use purposes from garden land, ponds, agricultural land to residential land as stipulated in point c, clause 2, Article 10 of Resolution No. 254/2025/QH15:

1. The calculation of land use fees is applied once to a household or individual and is calculated on 1 land plot selected by the household or individual; the subsequent purpose conversion on that land plot or the purpose conversion of another land plot shall calculate land use fees equal to 100% of the difference between land use fees calculated according to residential land prices and land use fees calculated according to agricultural land prices at the time of the decision allowing land use purpose conversion issued by a competent state agency.

2. In case households and individuals with many land plots (including many land plots within many provinces and centrally-run cities) are allowed to change land use purposes according to the provisions of this Decree, that household or individual is allowed to choose 1 land plot to apply for calculating land use fees according to the provisions of this Decree. The household or individual commits to this content and is responsible for its commitment, as shown in the application for land use purpose change.

3. In case agencies and competent persons detect that households and individuals have been applied the calculation of land use fees according to the provisions of point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 but still request to choose land plots to continue to enjoy this policy, they shall transfer information to the tax authority for the tax authority to recalculate land use fees at a rate of 100% of the difference between land use fees calculated according to residential land prices and land use fees calculated according to agricultural land prices at the time of the land use purpose conversion decision; the amount of land use fees that households and individuals have paid (if any) is deducted from the recalculated land use fees; at the same time, households and individuals must pay an amount equivalent to the late payment level of land use fees calculated from the time of the land use purpose conversion decision to the time the agency or competent person has a document transferring the violation to the tax authority according to tax management law.

4. The calculation of the number of land use purpose conversions, determination of residential land allocation limits, and selection of land plots for land use purpose conversion to be applied according to the provisions of this Article is calculated from August 1, 2024.

Residential land prices and agricultural land prices for calculating residential land use fees and agricultural land use fees are land prices on the land price list as prescribed in Article 8 of the Government's Decree detailing and guiding a number of articles of Resolution No. 254/2025/QH15 of the National Assembly stipulating a number of mechanisms and policies to remove difficulties and obstacles in the organization of the implementation of the Land Law at the time of the decision of the state agency authorizing the permission to change land use purposes.

5. The land allocation limit for calculating land use fees when changing land use purposes is determined as follows:

a) The residential land allocation limit for calculating land use fees according to the provisions of this Article is the residential land allocation limit prescribed by a competent state agency in accordance with the provisions of land law applied at the time of the decision allowing the change of land use purpose of the competent state agency. This limit is determined for each household and individual. In case households and individuals are formed by separation of households according to the provisions of law, they are considered as 1 land user object to be applied the policy of calculating land use fees according to the provisions of this Article.

b) In case many households and individuals have common land use rights of 1 land plot, the area within the residential land allocation limit is determined as follows:

b1) In case households and individuals are permitted by competent state agencies to separate land plots for each household and individual, the determination of area within the limit for calculating land use fees is calculated according to each land plot granted a certificate of land use rights, ownership of assets attached to land and according to the principle that each household and individual allowed to separate land plots is only allowed to determine the land area according to the residential land allocation limit to calculate land use fees once according to the provisions of this Decree.

b2) In case households and individuals have common land use rights of 1 land plot but do not implement or are not permitted by competent state agencies to separate land plots, the determination of area according to the residential land allocation limit is calculated according to the limit of households or individuals appointed as representatives of those who have common land use rights.

c) The limit for allocating residential land in the locality for households when calculating land use fees according to the provisions of this Decree is calculated according to the limit for allocating residential land to individuals at the time of the decision allowing the change of land use purpose regardless of the number of members in the household with common land use rights.

The calculation of payment fees for land use purpose conversion from garden land, pond land, agricultural land to residential land specified in point c, clause 2, Article 10 of Resolution No. 254/2025/QH15 shall be implemented according to the provisions of Article 20 of Decree No. 103/2024/ND-CP.

The collection, payment, inspection, and management of land use fees calculated according to the provisions of this Decree shall be carried out in accordance with the provisions of Decree No. 103/2024/ND-CP (amended and supplemented in Decree No. 291/2025/ND-CP), regulations in this Decree and laws on tax management.

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