Running an IT business as an IE requires careful planning of the tax burden and a clear understanding of the legal framework in the chosen jurisdiction. For developers, startups, and freelancers, the country where an IE is registered directly affects financial efficiency, reporting complexity, and business scalability.

Georgia attracts entrepreneurs with its transparent tax system, low tax rates, and simplified business registration procedures. Comparing the tax conditions for IE in Belarus and Georgia allows entrepreneurs to assess potential savings, the level of bureaucracy, and overall ease of doing business.

In this article, we take a detailed look at the key tax aspects for IT professionals operating as IE, compare mandatory payments, reporting requirements, and financial advantages in both jurisdictions. This analysis will help IT entrepreneurs make an informed decision about the country of registration and build an optimal tax model for their business.

Specifics of IE in the IT Sector

In the IT industry, IE is one of the most popular business structures. For developers, freelancers, consultants, and small studios, this format offers flexibility in working with clients, simplified reporting, and minimized administrative costs. It is well suited for projects with a limited number of employees, as well as for working with international clients where fast contract execution and direct access to payments are essential.

IT businesses are highly mobile and digital by nature. Software development, web services, mobile applications, and consulting do not require significant physical assets — the main resource is qualified specialists. Operating as IE allows entrepreneurs to use simplified tax regimes, maintain minimal accounting records, and interact efficiently with clients, making this structure particularly attractive for startups and freelancers.

The choice of tax regime directly affects the profitability of an IT business. Mandatory payments, income and expense accounting rules, and reporting frequency determine how much resources remain available for investment, team development, and project scaling. For IT professionals, selecting the right business structure and jurisdiction helps minimize tax burden and keep administrative procedures transparent, allowing them to focus on product development and client acquisition rather than bureaucracy.

Tax Burden for IE in Belarus

For IT professionals operating as IE in Belarus, understanding the tax burden is a key factor in financial planning and business efficiency. Mandatory payments, payment procedures, and deadlines directly affect profitability and growth potential.

Main taxes and contributions

IT IE in Belarus cannot use the simplified “single tax” regime available to a limited range of activities. As a result, personal income tax becomes the primary tax obligation, calculated on earned income. In addition, IE are required to pay social security and pension contributions, which ensure access to pension and medical benefits.

Tax rates and payment procedures

Personal income tax for IT IE is calculated based on actual income, with the option to deduct documented expenses. The standard tax rate is 20% of net income. Social and pension contributions are calculated based on a minimum contribution base or actual income and are paid quarterly. If annual income exceeds certain thresholds, tax rates may increase in accordance with applicable regulations.

Reporting and deadlines

IE are required to submit personal income tax declarations on a quarterly and annual basis, as well as reports related to social contributions. Contributions are paid quarterly. Compliance with deadlines is essential to avoid penalties and administrative sanctions, and helps maintain predictable cash flow without unexpected expenses.

This taxation approach makes operating as IE in the IT sector a manageable and flexible business model, provided tax obligations are considered in advance when planning income and expenses.

Tax System for IE in Georgia

Georgia attracts IT entrepreneurs with its transparent and business-friendly tax system, minimal bureaucracy, and fast business registration. For IT IE, this jurisdiction offers tax optimization opportunities and allows entrepreneurs to focus on product development and client acquisition.

Registration and tax regime for IT businesses

Registering as IE in Georgia is fast and involves minimal administrative barriers. IT IE can operate under preferential tax regimes designed for digital services, significantly reducing tax burden and simplifying operations for developers, freelancers, and small studios. Registration can be completed online or through tax authorities and typically takes only a few days.

Tax rates and mandatory payments

Georgia offers low tax rates for IT IE. The primary tax is personal income tax. Under the standard regime, individuals pay 20% of net income if no special status is applied.

Entrepreneurs who obtain Small Business Status benefit from preferential tax rates:

• For annual turnover up to 30,000 GEL (approximately €9,500), Micro Business Status may apply, resulting in a 0% tax rate.
• For annual turnover between 30,000 and 500,000 GEL (up to approximately €170,000), IE pay only 1% of gross turnover.
• If annual turnover exceeds 500,000 GEL, the tax rate increases to 3% of turnover for this category.

These preferential rates are not applied automatically — entrepreneurs must register as IE and separately apply for Small Business Status with the tax authorities.

Social contributions for IT IE in Georgia are also considerably lower and more predictable, making it easier to plan finances and reduce administrative overhead.

Reporting requirements

Tax reporting in Georgia is highly simplified. Depending on the chosen tax regime, IE submit declarations annually or quarterly, with minimal accounting requirements. This simplicity and transparency make Georgia especially appealing to IT professionals working with international clients and cross-border projects.

Comparison of Tax Conditions: Belarus vs Georgia

Choosing a jurisdiction for an IT business directly affects tax burden, administrative complexity, and scaling opportunities. Belarus and Georgia offer fundamentally different approaches to taxing IE, making comparison essential for IT professionals.

Tax burden and potential savings

In Belarus, IT IE pay personal income tax on net income and mandatory social contributions, with no special preferential regimes comparable to a turnover-based single tax. This limits opportunities for tax optimization.

In Georgia, IT entrepreneurs can obtain Small Business Status and legally pay only 1% of turnover up to 500,000 GEL, significantly reducing mandatory payments and freeing up funds for business growth, investment, and team expansion. This makes Georgia particularly attractive for startups and freelancers working with international clients.

Ease of reporting and accounting

Belarusian IE must submit annual tax declarations and pay social contributions quarterly, requiring careful compliance and basic accounting.

Georgia offers a much simpler system: reporting is minimal, declarations are filed annually or quarterly depending on the regime, and accounting requirements are limited to basic income tracking. This reduces administrative burden and allows entrepreneurs to focus on business development rather than paperwork.

Scaling and investment opportunities

In Belarus, scaling an IT business as IE is limited, and business expansion or investment attraction often requires transitioning to a more complex legal structure, such as a limited liability company.

In Georgia, low tax rates and simple business operations make IE suitable for international contracts, scaling, and attracting foreign clients. The ability to pay only 1% of turnover provides financial flexibility and supports sustainable growth.

Practical Recommendations for IT Professionals

Choosing a jurisdiction for operating an IT business as IE directly affects tax efficiency, accounting simplicity, and international cooperation opportunities. Strategic planning helps reduce mandatory payments and create a flexible, scalable business model.

How to choose the optimal jurisdiction

When selecting a country of registration, it is important to consider not only tax rates but also administrative burden, access to international payment systems, and the jurisdiction’s reputation among foreign clients. For small teams and international projects, Georgia often offers clear advantages due to low turnover taxes and simplified reporting. Belarus may be suitable for those primarily focused on the domestic market and familiar with local regulations.

Tax optimization strategies within legal frameworks

Legal tax optimization is essential for IT IE. In Georgia, this is achieved by registering under Small Business Status and correctly applying the 1% turnover tax regime. In Belarus, optimization relies on accurate expense accounting, income planning, and proper use of available deductions and allowances.

Impact of jurisdiction choice on international contracts and payments

Jurisdiction selection directly affects international payment capabilities. In Georgia, IT IE can easily open accounts with international banks and connect to online payment systems, simplifying cross-border transactions. In Belarus, working with foreign payments may involve additional procedures and regulatory requirements.

Considering these factors, IT professionals can choose a jurisdiction that ensures financial efficiency, operational simplicity, and secure collaboration with international clients.

Conclusion

Choosing a jurisdiction for operating an IT business as IE is a strategic decision that affects tax burden, administrative processes, and international business opportunities. Belarus and Georgia offer fundamentally different conditions: Belarus may be suitable for domestic operations, while Georgia provides significant advantages in tax optimization, simplified reporting, and international expansion.

Our team of professionals is ready to assist IT specialists in selecting the optimal jurisdiction for IE registration based on business goals, scaling plans, and international operations. We provide end-to-end support — from jurisdiction analysis and tax model selection to business registration and financial setup — ensuring legal and tax compliance for your projects.

How to contact us 

For more information or a consultation on taxes and IT business 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.