Cases Eligible for 50% Land Use Levy Reduction from November 6, 2025

Cases eligible for 50% land use levy reduction is a topic of interest for many people when carrying out procedures for land allocation, changing land use purposes, or applying for Land Use Right Certificates. Accurately grasping the preferential subjects and application conditions helps land users maximize their financial rights. The following article by Long Phan Consulting Company will analyze these regulations in detail.

The poor and ethnic minorities in areas not facing particular difficulties

According to Clause 7, Article 1 of Decree 291/2025/ND-CP (amending Clause 1 Article 19 Decree 103/2024/ND-CP), the State implements a policy of 50% land use levy reduction for poor people, households, or individuals who are ethnic minorities.

• 100% Exemption: For those living in areas with extremely difficult socio-economic conditions, border areas, and islands (Point b Clause 1 Article 18 Decree 103/2024/ND-CP).
• 50% Reduction: For those living in areas not belonging to the above list (e.g., plains, urban areas, or normal rural areas).

To enjoy this incentive, you need to provide a Poor Household Certificate or Confirmation of Ethnic Minority status.

Households and individuals must relocate due to land expropriation

Decree 291/2025/ND-CP clarifies financial support for people affected by site clearance. A 50% reduction applies when the State recovers land attached to housing, forcing relocation, provided all 3 conditions are met:

1. Must relocate: Land recovery causes loss of current residence.
2. Ineligible for compensation: For residential land (often land without Red Book, encroached land, etc., that is only considered for new land allocation with levy collection).
3. No other accommodation: In the commune-level administrative unit where land is recovered.

>>> See more: Land Use Extension for Individuals

Officials, civil servants, and members of the armed forces working in disadvantaged areas

Cadres, civil servants, public employees, and members of the armed forces are the core group carrying out tasks in strategic areas. Clause 2, Article 19 of Decree 103/2024/ND-CP (amended by Decree 291/2025/ND-CP) stipulates a 50% reduction in land use fees for residential land for the subjects specified in points a and b, Clause 3, Article 124 of the 2024 Land Law.

The specific subjects to which this applies include:

• Officials, civil servants, public employees, active-duty officers, professional soldiers, defense civil servants, defense workers and employees, police officers, non-commissioned officers, police workers, cryptography personnel and other personnel working in cryptography organizations who receive salaries from the state budget and have not yet been allocated land or housing;
• Individuals who are teachers or healthcare workers working in border communes or island areas with difficult socio-economic conditions, or areas with particularly difficult socio-economic conditions, but who do not own land or housing in their workplace or have not received housing support policies as stipulated by housing laws.

Eligibility requirements:

• Work location:Currently working under point b, clause 1, Article 157 of the 2024 Land Law, specifically: using land to implement housing policies, residential land for people with meritorious services to the revolution, war invalids or sick soldiers unable to work, families of martyrs without primary laborers, and the poor; using land to implement investment projects for the construction of social housing, worker accommodation in industrial zones, housing for the people’s armed forces, renovation and reconstruction of apartment buildings according to the provisions of the law on housing; residential land for people who must be relocated when the State reclaims land due to risks threatening human life; residential land for subjects specified in points a and b, clause 3, Article 124 of the 2024 Land Law, currently working in border communes, islands or island districts without commune-level administrative units in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions.
• Current housing situation:They have not been allocated land or housing, and have not received any form of housing support at their workplace.

The reduction in land use fees applies within the local land allocation limit for residential purposes. For any area exceeding the limit (if any), you will have to pay 100% of the land use fee based on the specific land price.

>>> See more: Deregistration of Lease or Sublease of Land Use Rights in Infrastructure Projects

Cemetery infrastructure investment project in particularly disadvantaged areas

Point a, Clause 5, Article 19 of Decree 103/2024/ND-CP provides a 50% reduction for land used to transfer land use rights attached to infrastructure and build ash storage facilities (Point a Clause 1 Article 157 Land Law 2024).

• Conditions: Used for production/business in investment incentive sectors/areas (excluding commercial housing/services); invested in areas with extremely difficult socio-economic conditions.

Required documents and procedures for a 50% reduction in land use fees

According to Clause 19 Article 13 Decree 50/2026/ND-CP, the land user must submit a dossier via the single-window mechanism. The Land Registration Office creates an Information Transfer Sheet to the Tax Authority, which then calculates the reduction.

Standard Dossier:

1. Request: Land use levy declaration (Form 01/TSDD) and Request for exemption/reduction (Form 02 Appendix I Decree 103/2024/ND-CP).
2. Subject Proof: Poor household book; Ethnicity confirmation; Work transfer decision/confirmation for officials/armed forces.
3. Housing Status Proof: Commune PC confirmation of no housing/land or displacement due to recovery without other accommodation.
4. Land Dossier: Decision on land allocation/purpose change or Parcel technical dossier.

In-depth land consulting services at Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive consulting solutions, helping clients optimize land financial obligations. We structure our support into the following key areas:

• Provide consultation and review the conditions to determine the exact amount of land use fee reduction.
• Assisting in drafting applications and preparing supporting documents to prove eligibility and conditions as required by the tax authorities.
• We will represent you in working with the Land Registration Office and the Tax Department to explain your documents.

Using Long Phan Consulting Company services saves you time and effort, avoids risks, and ensures your documents are processed quickly and efficiently.

>>> See more: Land procedure service for businesses in Ho Chi Minh City

Some frequently asked questions about cases eligible for 50% land use levy reduction

Below are some frequently asked questions regarding the latest land use fee reduction policy for your reference:

Are ethnic minorities living in centrally-governed cities eligible for a reduction in land use fees? 

Yes. Ethnic minorities living in areas not classified as having particularly difficult socio-economic conditions (such as cities and towns) are entitled to a 50% reduction in land use fees as stipulated in Point a, Clause 1, Article 19 of Decree 103/2024/ND-CP, amended by Decree 291/2025/ND-CP.

What are the housing requirements for receiving a reduction in land use fees when land is expropriated? 

According to Point b, Clause 1, Article 19 of Decree 103/2024/ND-CP, amended by Decree 291/2025/ND-CP, the condition for receiving a reduction in land use fees when land is reclaimed by the State is that the individual must relocate without being eligible for compensation for residential land and must not have any other residence within the commune-level administrative unit where the land is reclaimed.

What housing requirements do teachers working in border communes need to meet to qualify for a reduction in land use fees? 

Individuals who are teachers working in border communes, islands, or island districts without commune-level administrative units in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions, but who do not own land or housing in their workplace or have not received housing support policies as prescribed by housing law.

(Legal basis: Clause 2, Article 19 of Decree 103/2024/ND-CP, amended by Point b, Clause 7, Article 1 of Decree 291/2025/ND-CP; Point b, Clause 3, Article 124, Point b, Clause 1, Article 157 of the Land Law 2024)

Is it possible for a cemetery investment project in a typical rural area to receive a 50% reduction in land use fees? 

No. The 50% reduction policy only applies to cases where land is used for investment projects in cemetery infrastructure to transfer land use rights associated with infrastructure, and to build crematoriums for storing cremated remains as stipulated in point a, clause 1, Article 157 of the 2024 Land Law, specifically, land used for production and business purposes in investment-incentive sectors or in investment-incentive areas as prescribed by investment law and related laws, excluding land used for commercial housing construction, commercial and service land use.

(Legal basis: Point a, Clause 5, Article 19 of Decree 103/2024/ND-CP.)

Which agency is responsible for managing unused land on islands that have not yet been allocated to district-level administrative units? 

Regarding the management of unused land on islands not yet assigned to district or commune-level administrative units, the Chairman of the Provincial People’s Committee is responsible for management in accordance with the provisions of Clause 3, Article 7 of the 2024 Land Law.

What responsibilities does the representative of an economic organization have regarding the land assigned to them for project implementation? 

The representative of an economic organization is responsible to the State for managing the land area used to implement investment projects in accordance with the law. This responsibility includes using the land for the correct purpose, within the correct boundaries, according to the schedule, and fulfilling all related financial obligations. In case of violations, the representative shall be held responsible according to regulations, depending on the nature and extent of the violation.

(Legal basis: Point d, Clause 1, Article 7 of the 2024 Land Law.)

Are poor people living in particularly disadvantaged areas eligible for reductions or exemptions from land use fees? 

Poor people, households or individuals belonging to ethnic minorities living in areas with particularly difficult socio-economic conditions, border areas, and islands are among the cases exempt from land use fees as stipulated in point b, clause 1, Article 18 of Decree 103/2024/NĐ-CP.

Conclusion

Understanding the cases eligible for 50% land use levy reduction is crucial for financial protection. For quick dossier appraisal and procedure support, please contact Hotline 1900636389 for  Long Phan Consulting Company.