📌 Summary:
- Business license fee exempt when temporarily suspending business if all conditions are met Regarding the timing of the temporary suspension registration, the validity of the registration documents, and the status of payment of the annual suspension fee.
- The application for temporary suspension must include a complete notification form as prescribed and a resolution/decision/meeting minutes regarding the business's decision to temporarily suspend operations.
In the context of many businesses and household businesses facing market fluctuations, temporarily suspending operations is a common solution for restructuring. However, one of the important questions raised is whether business license fees must still be paid during the suspension period. This is a practical legal issue that needs clarification to avoid risks related to tax compliance.
I. Legal basis
Whether a business/household business is exempt from business license fees when temporarily suspending operations depends on several factors. timeline , and validity, completeness This depends on the notification of temporary suspension, and also on whether or not the fee was paid that year.
Specifically, according to Circular 65/2020/TT-BTC: in case of temporary suspension of operations during the calendar year (January 1st - December 31st), businesses/household businesses are allowed to... Exemption from business license fees for the year of temporary suspension. If all the conditions are met:
- at the time the funds are credited temporary suspension registration document Submit to the business registration authority or the directly managing tax authority. before the deadline for paying the prescribed fee. (January 31st every year);
- Not yet submitted The business license fee for the year is temporarily suspended.
If both of the above conditions are not met simultaneously, the business/household business must still pay the business license fee for that year as prescribed.
Note:
Small and medium-sized enterprises (SMEs) converting from household businesses (including branches, representative offices, and business locations) are exempt from business license fees for 03 years after establishment. If the exemption period ends in the first 06 months of the year, the full annual business license fee must be paid; if it ends in the last 06 months of the year, 50% of the full annual business license fee must be paid.
– According to Clause 4, Article 1 of Circular 65/2020/TT-BTC
👉 See more: Things startups need to know: Policies on exemption from business license fees for new businesses.
II. What are the documents and procedures for registering a temporary suspension of business operations?
1. Registration documents
a) For businesses, branches, business locations, and representative offices
According to the Paragraph 2 of Article 60, Chapter VI Decree 168/2025/ND-CPThe notification file for temporary suspension includes the following documents:
- Temporary suspension notice theo Form No. 27, Appendix I Issued together with Circular 68/2025/TT-BTC;
(I.e. Download Form No. 27 here.
- For of enterpriseThe file includes a copy or original of the resolution/decision on the temporary suspension, specifically:
- One member limited liability company: decision of the owner.
- Limited liability company with two or more members/partnership companyResolution/Decision of the Board of Members.
- Joint Stock CompanyResolution/Decision of the Board of Directors.
- In cases where a business authorizes someone else to carry out the procedure, the accompanying documents must include the authorization letters as stipulated in the regulations. Article 12 Decree 168/2025/ND-CP.
b) For household businesses
According to the Point c, Clause 4, Part II According to Decision 2353/QD-BTC, the notification dossier for temporary suspension includes the following documents:
- Temporary suspension notice theo Form No. 03 Appendix II Issued together with Circular 68/2025/TT-BTC;
- For household business For groups of individuals established before the effective date of Decree 168/2025/ND-CP, the accompanying documents must include the Minutes of the meeting of the group of individuals participating in the household business regarding the temporary suspension.
- In cases where a business household authorizes someone else to carry out the procedures, the documents must include the authorization documents as stipulated in the same Point.
2. Registration process and procedures
The registration for temporary business suspension can be done in one of the following ways:
- This is done directly at the Business Registration Office.
- This is done through public postal services.
- This is done through the official electronic information network.
The process and procedures for registering a temporary suspension of business operations for enterprises and household businesses are basically the same, only... The difference lies in the agency receiving the application.. As follows:
➡️ Step 1: Prepare a complete set of documents, including all the relevant papers mentioned above.
➡️ Step 2: Submit the application for temporary suspension to the Business Registration Authority. provincial level (for of enterprise) or Commune (for household business) at the latest 03 days Work began before the scheduled suspension date.
➡️ Step 3: The registration agency receives the application, issues an acknowledgment receipt, and schedules a date for receiving the results.
➡️ Step 4: Within one working day from the date of receiving the application, the Business Registration Authority will review the validity of the application and issue a certificate confirming the temporary suspension of business operations for the enterprise/household business. If the application is invalid, the Business Registration Authority will notify the applicant in writing of the necessary amendments or additions.
Note:
- The suspension period for each registration must not exceed 12 months.
- In the case of a business temporarily suspending operations for less than 15 days, it is not necessary to register the temporary suspension.
It can be seen that the regulations on business license fees in cases of temporary business suspension are designed to ensure fairness and transparency in tax management, while also creating conditions for businesses and household businesses to proactively arrange their operations. Get it rightUnderstanding the deadlines, required documents, and necessary procedures will help taxpayers. do right, strictly adhering to regulations, avoiding unforeseen issues, and ensuring legal safety during operation.