Mr. N.H.P from Phu Tho province shared that in early March 2025, he submitted an application to convert agricultural land to residential land (within the state-allocated limit). As a beneficiary of the state’s policies for individuals with meritorious services, he was unaware of the exemption and reduction procedures for land-use fees and thus did not declare his eligibility in the application.
By late March, he received approval for the land-use conversion, and in mid-April, the tax authority issued a notice detailing the payable amount. Mr. P. has since paid the full land-use fee and obtained a new land-use rights certificate (red book). He now seeks clarification on whether he can request the tax authority or the ward-level People’s Committee, following the consolidation of the two-tier administrative system, to recalculate the reduced amount and refund the overpaid land-use fee.
In response, the Phu Tho Tax Department cited several regulations governing the procedures for land-use fee exemptions and reductions for individuals with meritorious services. These include Decree 131 (Articles 106 and 107), the 2024 Land Law (Article 157), Decree 151/2025, and Decree 103.
Landowners are uncertain about reclaiming overpaid land-use fees when eligible for exemptions or reductions. Photo: T.K |
Specifically, Clauses 3 and 5 of Article 18 in Decree 103 stipulate that residential land within the allocated limit (including land allocation, land-use conversion, and land certification for current users) is exempt from land-use fees for households and individuals with meritorious services who qualify for such exemptions.
For cases eligible for land-use fee exemptions without requiring an application or land price determination, the competent authority is responsible for compiling and summarizing these cases during the land allocation process.
Clauses 4 and 6 of Article 19 in Decree 103 outline reductions in land-use fees for residential land within the allocated limit for individuals with meritorious services. The tax authority calculates the payable land-use fee and the reduction amount based on land records provided by the state land management agency.
Land-use fee reductions are processed concurrently with the calculation of payable fees, as outlined in Article 20 of the Decree.
Based on these regulations, the Phu Tho Tax Department advised that Mr. P., having received approval for land-use conversion, paid the land-use fee, and obtained the land certificate, can now apply for exemptions or reductions if eligible. He should contact the competent authorities (commune-level People’s Committee, land management agency, land registration office, or one-stop service center) for guidance and to complete the necessary documentation.
Nguyễn Lê
– 07:55 04/10/2025
“Land Conversion Fees: HoREA Proposes Strict Regulations and Lower Rates”
The proposal put forward by HoREA suggests that the government implement a “strict regulation” regarding the reduction of land use fees when converting agricultural land to residential land. They recommend a flat rate of 20% for land allocations within the residential land limit and 30% for allocations exceeding this limit.
