Recalculating Land Use Fees for Early Payers: A Proposal
The Ministry of Finance has drafted a government resolution to address and resolve issues related to land use fee calculations for households and individuals converting agricultural land to residential land.
The draft resolution aims to alleviate financial burdens on citizens. However, its transitional provisions have sparked concerns that early payers may face disadvantages.
Specifically, Article 3, Clause 2 of the draft resolution states, “In cases where households or individuals have already paid land use fees as notified by tax authorities, no recalculation of land use fees shall be made as per the resolution.”
Proposals advocate recalculating land use fees for early payers to ensure fairness. Photo: Ninh Phan.
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In response, many suggest allowing fee recalculations for these cases to protect household and individual interests and prevent disparities.
The Ho Chi Minh City Real Estate Association (HoREA) recommends amending Article 3, Clause 2 of the draft resolution: “In cases where households or individuals have already paid land use fees as notified by tax authorities, they shall be entitled to a recalculation of land use fees as per the resolution.”
Mr. Le Hoang Chau, Chairman of HoREA, noted that the draft resolution’s policy benefits households and individuals paying land use fees under its provisions.
However, those who paid land use fees (100% of the amount) under Decree 103 (regulating land use and rental fees) would be at a disadvantage.
Early Payers at a Disadvantage?
According to Mr. Chau, Decree 103 has been in effect for just over a year (since August 1, 2024), so few households or individuals have paid 100% of land use fees for both “within-limit” and “over-limit” residential land areas.
Thus, Mr. Chau believes recalculating fees under the resolution would minimally impact state budget revenues.
Mr. Chau added that the Ministry of Finance has sufficient data on land use fee collections to report to the government and competent authorities, avoiding comparisons between households and individuals who previously paid excessive fees.
Attorney Nguyen Van Dinh.
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Attorney Nguyen Van Dinh argued that not recalculating fees for those who paid as notified by tax authorities would be unfair to citizens.
To prevent discrimination among land users, Attorney Dinh proposed amending the resolution’s transitional provisions to allow retroactive application for those who paid 100% of land use fees when converting land to residential use under Decree 103.
Under this proposal, citizens who paid 100% of land use fees would receive refunds from the state budget or deductions from other financial obligations to the state.
Attorney Dinh stated that this provision would ensure public consensus.
Ninh Phan
– 07:50 16/09/2025
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