📌 Summary:
- License fee exempted when temporarily suspending business if all conditions are met on the time of temporary suspension registration, the validity of the registration dossier and the status of payment of the suspension fee.
- The application for temporary suspension must include a full notice in the prescribed form and a resolution/decision/meeting minutes on the enterprise's decision to temporarily suspend.
In the context of many businesses and business households facing market fluctuations, temporary suspension of business is a commonly chosen solution to restructure operations. However, one of the important questions raised is whether or not the business license fee must still be paid during the suspension period. This is a practical legal issue that needs to be clarified to avoid risks in tax compliance.
I. Legal basis
Whether or not a business/household business is exempt from business license fees when temporarily suspending business depends on timeline , and validity, completeness of the notice of suspension, and also depends on whether the fee has been paid or not paid that year.
Specifically, according to Circular 65/2020/TT-BTC: in case of temporary suspension of operations during the calendar year (January 1 - December 31), enterprises/business households are allowed to exemption of business license fee for the year of suspension if the following conditions are met:
- Have temporary suspension registration document Send to the business registration authority or the directly managing tax authority before the deadline for paying fees as prescribed (January 31 every year);
- Not yet paid The annual business license fee is temporarily suspended.
If both of the above conditions are not met, the enterprise/business household must still pay the business license fee for that year according to regulations.
Note:
Small and medium-sized enterprises converted from business households (including branches, representative offices, and business locations) are exempted from business license fees for 03 years after establishment. In case the exemption period ends in the first 06 months of the year, the business license fee for the whole year must be paid. In case the exemption period ends in the last 06 months of the year, 50% of the business license fee for the whole year must be paid.
– According to Clause 4, Article 1 of Circular 65/2020/TT-BTC
II. What are the documents and procedures for registering temporary suspension of business?
1. Registration form
a) For enterprises, branches, business locations, representative offices
According to the Section 2, Article 60, Chapter VI Decree 168 / 2025 / ND-CP, the suspension notice file includes the following documents:
- Notice of temporary suspension theo Form No. 27 Appendix I issued with Circular 68/2025/TT-BTC;
(I.e. Download Form No. 27 here.
- For enterprise, the file must include a copy or original of the resolution/decision on the suspension, specifically:
- One member limited liability company: owner's decision.
- Limited liability company with two or more members/partnership: resolution/decision of the Board of Members.
- Joint Stock Company: resolution/decision of the Board of Directors.
- In case the enterprise authorizes the implementation of procedures, the dossier must be accompanied by authorization documents as prescribed in Article 12 Decree 168/2025/ND-CP.
b) For business households
According to the Point c, Clause 4, Part II Decision 2353/QD-BTC, the temporary suspension notification file includes the following documents:
- Notice of temporary suspension theo Form No. 03 Appendix II issued with Circular 68/2025/TT-BTC;
- For household business established by a group of individuals before the effective date of Decree 168/2025/ND-CP, the dossier is accompanied by the Minutes of the meeting of the group of individuals participating in the business household regarding the temporary suspension.
- In case the business household authorizes the implementation of procedures, the dossier must be accompanied by authorization documents as prescribed in the same Point.
2. Registration process and procedures
Registration of temporary suspension of business can be done by one of the following methods:
- Perform directly at the Business Registration Office;
- Implemented through public postal services;
- Implemented through the official electronic information network.
The process and procedures for registering temporary suspension of business for enterprises and business households are basically the same, only different in the agency receiving the application. As follows:
➡️ Step 1: Prepare a complete file including the relevant documents mentioned above.
➡️ Step 2: Submit application for temporary suspension to the Business Registration Office provincial level (for enterprise) or Commune (for household business) slowest 03 days work before the expected date of suspension.
➡️ Step 3: The registration authority receives the application, issues a receipt and makes an appointment to return the results.
➡️ Step 4: Within 01 working day from the date of receiving the dossier, the Business Registration Authority shall review the validity of the dossier and issue a certificate of temporary suspension of business of the enterprise/business household. In case the dossier is invalid, the Business Registration Authority shall notify in writing the content that needs to be revised or supplemented.
Note:
- The suspension period of each registration shall not exceed 12 months.
- In case a business household temporarily suspends business for less than 15 days, it is not necessary to register for temporary suspension.
It can be seen that the regulations on business license fees in case of temporary suspension of business are built to ensure fairness and transparency in tax management, while creating conditions for businesses and business households to proactively arrange their operations. Get it right, understanding the deadlines, documents and necessary procedures will help taxpayers do right, comply with regulations, avoid unwanted incidents and ensure legal safety during operation.