Over the last few years, Belarus has continued to develop its IT sector, creating favorable conditions for companies that work in the IT sphere. A special role in this process is assigned to the High Technology Park (HTP), which offers residents tax benefits and preferences. Since 2025, the tax policy in the country has undergone significant changes, which have affected, among other things, the procedure for the payment of dividends. These changes are related to both the phasing out of preferential tax rates and the introduction of new regulatory requirements.
One of the key concerns for owners and investors of IT companies is the taxation of dividends. In 2024, Belarus had special reduced tax rates on dividend income – 6% and 0% if certain conditions are met. However, according to the planned changes, these rates will be gradually abolished: the 6% rate – from January 1, 2026, and the 0% rate – from January 1, 2028. In addition, from January 1, 2025, a 25% tax rate will be introduced for individuals who earn income over BYN 220,000 per year, which also affects the income of shareholders of IT companies.
Additional restrictions apply to dividend payments to foreign investors. In the context of the international economic and political environment, Belarus introduced a temporary permit procedure for profit payments to foreign participants from unfriendly countries. This procedure has been extended until December 31, 2025, which creates additional legal barriers for foreign investors.
Thus, owners and shareholders of IT companies should take into account all current and upcoming tax law changes in order to build an efficient profit distribution strategy. In this article, we will take a closer look at the current rules of dividend taxation, upcoming changes and their impact on the IT sector, as well as give recommendations on how to adapt the business to the new conditions.
Dividends as an instrument of profit distribution in IT companies
Dividends are one of the key instruments of profit distribution in business, which allows companies to reward their owners, shareholders and investors for their investments. In IT companies, this mechanism is of particular importance, as the industry often has both strategic investors and venture capital funds that are interested in return on investment.
The main functions of dividends in IT companies:
Investor remuneration.
Dividends are a way to financially incentivize shareholders and investors who have invested in business development.
Attraction of new investments.
A stable and transparent dividend policy makes a company more attractive to potential investors.
Optimization of capital structure.
Companies can adjust the balance between reinvesting profits in development and paying dividends, focusing on current financial goals.
Increasing confidence in the company.
Regular dividend payments signal a company’s financial stability and its ability to effectively manage cash flows.
In the IT sector, the approach to dividend payments can differ significantly from other industries. Many tech companies, especially startups, prefer to reinvest all profits into further development, research and marketing. However, more mature companies with sustainable businesses may distribute a portion of profits to shareholders in the form of dividends, especially if business growth slows.
The decision to pay dividends in an IT company depends on several factors:
- The financial health of the company – availability of profits and liquidity.
- Growth strategy – the need to reinvest in new projects and developments.
- Tax and legislative restrictions – current dividend tax rates and regulatory requirements.
- Shareholders’ expectations – the payout strategy may depend on the company’s ownership structure and investors’ expectations.
Thus, dividends in IT companies represent an important financial management tool, which requires competent planning and consideration of all external factors, including changes in the Belarusian tax legislation.
Understanding dividend payment
Dividends are a part of a company’s net profit that is distributed among its participants (shareholders or founders) in proportion to their share in the authorized capital. Dividends are one way of generating income from owning a stake in a company, especially if the company is consistently generating profits.
In IT companies, as in other sectors of the economy, the payment of dividends allows shareholders to receive a return on their investments. However, in this sphere there may be specific nuances related to reinvestment of profits and tax benefits for residents of the High Technology Park (HTP).
Sources of dividend payments
Dividends are paid from:
- The company’s net profit, which remains after all taxes and mandatory payments have been paid.
- Retained earnings from the previous years, if the company previously used the income for business development or formation of reserve capital.
- Free funds, provided there is a sufficient level of liquidity.
Procedure for making a decision on dividend payment
The decision to pay dividends is made by the general meeting of participants (for LLCs) or by the shareholders’ meeting (for JSCs). The following factors are taken into account in this process:
1. Company’s financial condition – analysis of the amount of net profit and available reserves.
2. Existence of restrictions on dividend payments – state prohibitions or authorization mechanisms are taken into account (for example, for companies with foreign participants from unfriendly countries).
3. Methods of payment – dividends can be paid in cash, less often in the form of property or shares.
4. Terms and procedure of payment – the company’s charter or a decision of the general meeting.
Frequency of dividend payment
Depending on the company’s policy, dividends may be paid:
- Annually – the most common option, especially in stable companies.
- Quarterly or semi-annually – found in large corporations or public companies.
- Lump sum at the end of several years – if the company has previously allocated profits for business development.
Restrictions on payment of dividends in Belarus in 2025
Restrictions on the payment of dividends are set by the state, for example:
1. Permit procedure for payment of dividends to foreign investors from unfriendly countries (until December 31, 2025). This procedure applies when dividends have been paid during the year and their aggregate amount for all foreign participants from unfriendly countries is more than 80,000 basic units (BYN 3,360,000 or approximately EUR 992,000) or its equivalent in foreign currency at the official exchange rate of the National Bank of Belarus as of the first day of the month in which the payment is made. Dividend payments below this amount do not need to be authorized by the regional executive committee (Minsk City Executive Committee).
2. Taxation at the rate of 25% when dividends are paid to all foreign organizations (until the end of 2026). In this situation the norms of international agreements on avoidance of double taxation are applied. But bear in mind that until December 31, 2026 the provisions on taxation of dividends in international agreements with unfriendly states are suspended.
3. Special tax rates for individuals who receive dividends – 25% tax on total income that exceeds 220,000 BYN per year.
Current tax rates on dividends in Belarus
In 2025, there are changes in the taxation of dividends in Belarus, which IT companies should take into account when planning their financial activities.
For individuals – residents of Belarus to whom dividends are paid by Belarusian companies:
- Standard rate: 13%.
- Reduced rate of 6%: valid until December 31, 2025; abolished from January 1, 2026. This rate was applied when profit was not distributed among the participants of a Belarusian organization for 3 years.
- Reduced rate of 0%: effective until December 31, 2027; canceled from January 1, 2028. This rate was applied when profit was not distributed among participants of a Belarusian organization for 5 years.
- Additional rate of 25%: from January 1, 2025 applies to total income exceeding BYN 220,000 per year. This income includes dividends, income under employment contracts and civil law contracts related to intellectual property. The tax is calculated by the tax authorities on the basis of a declaration, which must be filed by March 31, 2026, with the tax to be paid by June 1, 2026.
For legal entities – residents of Belarus:
- Tax rate on dividend income: 15%.
- For foreign organizations – non-residents of Belarus:
- 25% rate for dividend payments to all foreign organizations until December 31, 2026.
Conditions for application of reduced rates (6% and 0%)
The 6% rate: applies to dividends paid to Belarusian organizations (residents of Belarus) if certain conditions are met. The rate is effective until December 31, 2025.
0% rate: may be applied when dividends are reinvested or other specified conditions are met, and is effective until December 31, 2027.
It is important for IT companies in Belarus to consider these changes for effective tax planning and compliance.
Taxation of dividends for IT companies – residents of the High Technology Park in Belarus
In 2025, special tax conditions for High Technology Park (HTP) residents will continue to apply in Belarus to stimulate the development of the IT sector. HTP residents in 2025 continue to enjoy a number of tax preferences, including a reduced profit tax rate and exemption from taxation of income from transactions with tokens. However, the abolition of certain exemptions and the introduction of additional tax on excess income require a careful approach to tax planning and consideration of all changes in legislation.
Let us consider the key aspects of dividend taxation for HTP residents.
The same rates are used when paying dividends to individuals as for other companies:
Dividends are subject to income tax at 3%. However, if the total annual income of an individual exceeds 220,000 Belarusian rubles, the excess amount is subject to additional tax at the rate of 25%. It is important to note that this additional tax applies only to income taxed at the rate of 13% and does not affect income taxed at other rates.
Abolition of certain tax exemptions
Starting from January 1, 2025, certain tax exemptions previously applicable to income from shares and stakes in the authorized capital of Belarusian companies are abolished. Such income is now subject to general taxation, which may affect the tax burden of investors.
Conclusion
In 2025, the tax regulation of dividend payments in IT companies in Belarus has undergone some changes. The introduction of an additional 25% tax on total personal income over 220,000 BYN per year, as well as the phasing out of reduced rates on dividends (6% from 2026 and 0% from 2028) require IT companies to review their financial strategy.
Tax preferences remain in place for HTP residents, including a reduced income tax rate (9%) and exemption from taxation of income from token transactions. However, the abolition of certain exemptions from 2025 and possible future regulatory changes make financial planning even more relevant.
Additional restrictions relate to dividend payments to foreign investors from unfriendly countries: such transactions require a special permit until December 31, 2025 (for a certain amount of dividends), and dividends for all and foreign shareholders (investors) are taxed at a rate of 25%.
Thus, it is important for IT companies to take into account the current tax rates, and to also plan dividend payments in advance, analyzing possible tax consequences and adapting their policies to changing conditions. Efficient profit management, use of existing tax benefits and careful monitoring of changes in legislation will help minimize tax risks and optimize financial flows.
How to contact us
For more information or advice on issues related to IT sector, 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.
