Belarus remains one of the most attractive hubs for IT business development in Eastern Europe. Its stable tax system, availability of qualified specialists, and special regimes for technology companies allow businesses to build competitive teams and optimize costs. However, when hiring employees in the IT sector, it is important to understand which taxes and contributions are paid by the employer and which are withheld from the employee’s salary.

For companies, especially those operating internationally, this issue is not only financial but also strategic. The tax burden directly affects hiring costs, salary structure, and the attractiveness of job offers for developers, designers, and other IT specialists.

Belarusian legislation provides different approaches to taxation depending on the business form and company status. The most noticeable differences exist between regular companies and residents of the High-Tech Park (HTP), which operate under a special tax regime.

This article will outline the taxes and contributions paid by employers and employees in IT companies in Belarus, how personal income tax and contributions to the Social Protection Fund (FPN) are calculated, and how the tax burden differs between HTP residents and companies operating outside the park. Understanding this helps determine the “cost” of an IT specialist and how companies can legally optimize their expenses.

Key Taxes and Contributions in Belarusian IT Companies

When hiring employees in the IT sector, it is important to understand which taxes and contributions accompany salary payments. In Belarus, the taxation system is relatively transparent: some taxes are paid by the employer, while others are withheld from the employee’s income. Let’s examine the main ones in more detail.

Personal Income Tax

The main tax paid by all working citizens is the personal income tax.

• The tax rate is 13% of the gross salary. The taxpayer is the employee, but the employer withholds and remits it as a tax agent.
• The tax base includes all income paid to the employee in cash and in kind (salary, bonuses, incentive payments, paid leave, etc.).

Certain categories of citizens are eligible for tax deductions, such as for children, payment of first higher education, or for construction/purchase of housing for those in need of improved living conditions. These deductions also apply in the IT sector, as their eligibility is not affected by income size.

Thus, the employer withholds 13% from the employee’s salary, and the remaining amount is paid out as the net salary.

Contributions to the Social Protection Fund (SPF)

Another important part of the employer’s tax burden is contributions to the Social Protection Fund (SPF), which provide employees with pension and social benefits.

• The total SPF contribution rate is 34% of the payroll fund.
• Of this amount, 30% is paid by the employer, 1% is withheld from the employee’s salary, and the remaining 3% is allocated to other mandatory funds.
• These payments fund pensions, temporary disability benefits, maternity leave, and other social benefits.

For IT companies that are residents of the High-Tech Park (HTP), there is an opportunity to reduce the base for calculating SPF contributions, making hiring within the HTP more financially advantageous (details on this are provided later in the article).

Additional Mandatory Payments

In addition to personal income tax and SPF contributions, there are other mandatory payments that are usually part of the employer’s expense structure:

• Belgosstrakh contributions — around 0.6% of the payroll. These ensure insurance against workplace accidents and occupational diseases.
• Military and targeted contributions — currently not permanent payments for commercial IT companies, but they may be required by law in certain cases.

These amounts slightly increase the overall cost of hiring, but their payment is mandatory and monitored by tax authorities.

Total Tax Burden for IT Companies

In total, the combined tax burden on an IT company in Belarus consists of 13% personal income tax (withheld from the employee’s salary) and approximately 35% SPF contributions, which are borne by the employer.

This means that the actual “cost” of an employee for the company significantly exceeds the net salary, which is why proper tax planning is a key element of financial strategy in the IT business.

Employer and Employee Tax Burden: How It Is Distributed

To properly assess the cost of an IT specialist, it is important to understand who pays which taxes and how the financial burden is shared between the employer and the employee. In Belarus, these obligations are split: some taxes are withheld from the employee’s salary, while others are paid by the company on top of the gross amount.

What’s Included in Gross vs. Net Salary

When starting a job, IT specialists often discuss salary in terms of gross or net.

• Gross salary is the “pre-tax” salary, i.e., the amount before any taxes and contributions are deducted. All taxes and contributions are calculated based on this amount.
• Net salary is the amount the employee actually receives after withholding 13% personal income tax and 1% SPF contribution.

Example:
If a developer has a gross salary of 5,000 BYN:

• 13% personal income tax is withheld — 650 BYN.
• 1% SPF contribution is withheld — 50 BYN.
• The final net salary paid to the employee is 4,300 BYN.

Thus, the employee receives less than the gross amount specified in the employment contract.

Real Figures: Calculating the Total Cost of Hiring a Specialist

In addition to salary deductions, the company must make extra contributions on its own account, including:

• 34% to the SPF (social contributions)
• 0.6% to Belgosstrakh (insurance contributions)

Using the same example of a developer with a 5,000 BYN gross salary:

• 34% × 5,000 = 1,700 BYN — SPF contributions
• 0.6% × 5,000 = 30 BYN — Belgosstrakh insurance contributions

Total actual company cost for this employee:
5,000 + 1,700 + 30 = 6,730 BYN

Thus, for a 5,000 BYN pre-tax salary, the employer spends almost 35% more than the employee receives in hand.

How Taxes Affect the Compensation Structure in IT

Due to the high tax burden, IT companies increasingly review the structure of employee compensation. In addition to base salary, it may include:

• Bonuses and incentives tied to KPIs or projects
• Medical insurance, training, and corporate benefits, which are not always fully taxable
• Stock options or company shares as a form of long-term motivation, especially for team leads and key specialists

This approach allows companies to maintain competitive conditions while legally optimizing tax burden, and employees to receive more value than just a fixed salary.

Summary of Tax Burden in Belarusian IT Companies

• The employer bears around 35% additional costs on top of the gross salary.
• The employee loses around 14% of income to mandatory deductions.

This structure is typical for most companies, except for HTP residents, who enjoy separate tax benefits.

Features of Payroll Taxation for HTP Residents

The High-Tech Park (HTP) is a special legal regime established to support IT businesses in Belarus. HTP residents enjoy significant tax benefits, which reduce personnel costs and increase market competitiveness. Although the personal income tax rate for HTP residents is the same as for other companies (13%), residents have the option to reduce the amount of SPF contributions.

Reduced SPF Contributions and Their Impact on the “Cost” of an IT Specialist

One of the key advantages for employers who are HTP residents is the ability to lower SPF contributions.

By law, an HTP-resident company can calculate contributions not on the full salary, but on an amount that does not exceed the average monthly salary in the country, as set by Belstat (approximately 2,000 BYN in 2025).

This means that even if a developer’s salary is 5,000 BYN, SPF contributions are only calculated on 2,000 BYN.
As a result, a company can save tens of thousands of BYN per year per employee, while still providing full social guarantees.

This mechanism makes hiring specialists in the HTP significantly more cost-effective than outside the park and allows companies to offer competitive packages without straining the budget.

Why Non-HTP Companies Pay More — A Comparative Overview

Companies that are not HTP residents must:

• Pay SPF contributions on the entire payroll.
• Pay 20% corporate profit tax.
• Not apply the preferential VAT rate on exported IT services.

As a result, the total tax burden for such companies is 20–30% higher than for HTP residents. This directly affects hiring costs:

• For a standard company, hiring a developer with a 5,000 BYN salary costs roughly 6,700 BYN.
• For an HTP-resident company, the cost is about 5,200 BYN.

This difference is a decisive factor when planning expenses and choosing a business model in the Belarusian IT sector.

Thus, participation in the HTP allows IT companies to reduce overall tax burden, increase profitability, and offer employees more attractive working conditions. This is why most major IT employers in Belarus prefer to operate under this regime.

How to Legally Optimize Tax Burden

In Belarus’s IT sector, the tax burden can vary significantly depending on the chosen business structure, taxation system, and compensation setup. Proper planning allows companies to reduce costs while remaining fully compliant with the law. Key tools for legal tax optimization include:

Using HTP’s Preferential Regime

The main tool for reducing taxes in IT is joining the HTP. This special legal regime provides companies with multiple benefits:

• Exemption from corporate profit tax and VAT (for exported IT services).
• Reduced SPF contributions — based on an amount not exceeding the national average monthly salary.
• Simplified foreign currency transactions with international clients.
• Ability to hire foreign employees without work permits.

For IT companies primarily serving foreign clients, the HTP is the most effective form of tax optimization, balancing profitability and transparency.

Companies not eligible for HTP (e.g., in e-commerce, marketing, or consulting) can consider alternative regimes, such as working with self-employed contractors or external service providers, if properly structured legally.

Proper Distribution of Salary and Bonuses

Another legal way to reduce tax burden is through strategic structuring of salaries and additional payments.

For example:

• Part of the compensation can be paid as bonuses, incentives, or financial assistance, which may be subject to different tax rules.
• For long-term projects, quarterly bonuses or stock options can be used, linking employee income to performance while optimizing costs.
• Companies working with foreign clients can reimburse business trip expenses, personal equipment usage, or communication costs, which may not be subject to income tax if properly documented.

The key is that all payments must be transparent, documented, and accounted for. Only then is optimization safe and sustainable.

The Role of Tax Planning and Legal Support

Tax optimization is impossible without careful planning and professional support. Mistakes in structuring payments or choosing a tax regime can lead to fines and recalculations, especially in foreign transactions or cross-border payments.

Legal and accounting support allows companies to:

• Select the most advantageous tax regime based on company structure and personnel composition.
• Assess risks when paying freelancers, self-employed contractors, or foreign specialists.
• Build a transparent system for distributing income and bonuses.
• Ensure compliance with international agreements and currency control regulations.

Regular audits of the tax strategy help companies adapt to legislative changes in a timely manner and maintain an optimal balance between savings and security.

Thus, legal tax optimization in Belarus’s IT sector is based on three principles:

1. Utilizing available preferential regimes (primarily the HTP).
2. Structuring payments and employee incentive systems intelligently.
3. Continuous legal and accounting support for the business.

This approach allows companies to operate efficiently, legally, and predictably, while maintaining competitiveness in the international market.

Conclusion

Belarus’s tax system for IT companies is sufficiently flexible, allowing for transparent yet economically efficient payment models. With the right approach, choosing the legal regime, structuring bonuses correctly, and accounting for all contributions a company can significantly reduce its overall tax burden without violating the law.

However, achieving this is difficult without a systematic approach. It requires knowledge of tax regulations, practical payroll management experience, and understanding of HTP specifics and IT specialist compensation, including for international contracts.

Spex team supports IT companies in building transparent and advantageous financial processes:

• Recruiting specialists in the right locations.
• Handling payroll calculations, taxes, and contributions.
• Assisting companies both within and outside the HTP.
• Ensuring all payments are legal and optimized.

With us, you can focus on growing your team and product, while professionals take care of taxes and formalities.

How to contact us 

For more information or consultations on IT taxation in Belarus, do not hesitate to contact us. We are here to help and support you.

Phone and email communication options are available for your convenience:

• +375293664477 (WhatsApp/Telegram/Viber);
• info@spex.by.