Conversion of Purpose from Rice Cultivation Land to Homestead Land: Is Tax Exemption Applicable?
Article 134 of the Land Law 2013 stipulates:
- The State has policies to protect rice cultivation land and restrict the conversion of rice cultivation land to non-agricultural purposes. In cases where it is necessary to convert a portion of rice cultivation land to other purposes, the State shall implement measures to supplement the land area or increase the efficiency of rice cultivation land use.
The State has policies to support and invest in the construction of infrastructure, apply modern science and technology to the high-yield and high-quality rice cultivation areas.
Users of rice cultivation land are responsible for improving and enhancing the fertility of the land; they are not allowed to convert to the use of perennial crops, afforestation, aquaculture, salt production, or non-agricultural purposes without the permission of competent state agencies.
Those who are allocated or leased land by the State for non-agricultural purposes from specialized rice cultivation land must pay an amount to the State to supplement the lost area of specialized rice cultivation land or increase the efficiency of rice cultivation land use according to the Government of Vietnam's regulations.
The collection of land levy when changing the land use purpose is conducted according to Article 5 of Decree 45/2014/ND-CP.
Thus, in terms of policy, the state has policies to protect rice cultivation land and restrict the conversion of rice cultivation land to non-agricultural purposes. In cases where rice cultivation land is converted to homestead land, tax and fee exemptions are not granted, and those changing the land use purpose must pay an amount to the State to supplement the lost area of specialized rice cultivation land.
Respectfully!
