Business Suspension in Vietnam: Duration, Notice and Tax Duties

Short answer: An enterprise may suspend its business operations but must notify the Business Registration Office in writing at least 03 working days before the suspension date; each suspension lasts no more than 01 year. Upon expiry, the enterprise may extend the suspension or must resume operations. During the suspension period, the enterprise should note its tax obligations and no longer has to pay the business license tax, as the collection of the business license tax ceased from 01/01/2026 under Resolution 198/2025/QH15.

Legal basis

• Article 206 of the Law on Enterprises 2020 — suspension, temporary cessation and termination of business;
• Decree 168/2025/ND-CP on enterprise registration;
• Clause 7, Article 10 of Resolution 198/2025/QH15 — cessation of business license tax collection from 01/01/2026;
• Law on Tax Administration No. 108/2025/QH15 (effective from 01/7/2026).

Maximum suspension duration

• The enterprise must notify the Business Registration Office of the suspension at least 03 working days before the suspension date;
• Each suspension lasts no more than 01 year;
• Upon expiry, the enterprise may further extend the suspension or register to resume operations;
• Suspending without notification or with late notification may be subject to administrative sanctions in the enterprise registration sector.

Tax obligations during suspension

• The enterprise must still fulfill tax obligations arising up to the suspension date;
• On tax declarations during suspension: follow the Law on Tax Administration 108/2025/QH15 and guiding documents — enterprises should consult their directly managing tax authority to determine specific declaration and payment obligations in each case;
• Business license tax: from 01/01/2026, enterprises no longer have to pay the business license tax.

Suspension notification procedures

1. Prepare the business suspension notice using the form of Decree 168/2025/ND-CP;
2. Submit online via the National Enterprise Registration Portal or directly at the Business Registration Office under the Department of Finance;
3. Receive confirmation of the enterprise’s registered business suspension.

Common risks

• Suspending in practice without completing the notification procedure — still deemed operating;
• Forgetting to extend when the 01-year period expires;
• Missing tax and social insurance obligations for employees during the transition period.

If you need to determine the option best suited to your enterprise’s specific situation, you should discuss it with a lawyer in advance for dossier review and advice on the handling plan.

For quick advice, you may contact a lawyer at 0966.475.966.

Related articles

• Enterprise dissolution procedures
• In which cases is an enterprise’s business license revoked?
• When do the details on the Enterprise Registration Certificate have legal effect?