In recent years, self-employment has become one of the most widely discussed tools for legalizing income and optimizing the tax burden in the IT sector. In Russia, this regime has turned into a mass-market and straightforward way to work with companies and clients without registering a full legal business entity. In Belarus, similar mechanisms also exist, but they have a completely different legal nature, restrictions, and tax consequences.

For developers, designers, testers, analysts, and other IT professionals, choosing the right work regime is not just a matter of convenience. It affects the ability to cooperate with companies, work with foreign clients, receive payments from marketplaces and platforms, build long-term relationships with employers or customers, and minimize legal risks.

In this article, we compare how self-employment works in Russia and what alternatives exist in Belarus, ranging from the unified tax to individual entrepreneur registration. We will examine how these approaches actually differ, what risks and advantages each one has, when it is beneficial for a Belarusian IT specialist to remain an individual, and when it is better to formalize entrepreneurial activity. We will also look at taxation, reporting, access to foreign payments, and practical cooperation with companies.

Self-Employment in Russia: Key Features and Advantages of the Regime

The professional income tax regime has become a convenient and popular alternative to individual entrepreneur registration for Russian IT specialists. It offers a simple taxation model, minimal reporting, and the ability to officially work with both companies and individuals. For many developers, designers, testers, and other IT professionals, this regime has become a fast way to legalize income and establish cooperation with clients without complex formalities.

Who Can Be Self-Employed in IT

In Russia, citizens can obtain self-employed status if they:

• Provide services independently, without employees.
• Do not engage in activities that require licensing.
• Do not work under an employment contract.
• Do not exceed the established annual income limit, which remains a significant restriction.

For the IT sector, this means that the following specialists can be self-employed:

• Software developers.
• Designers, including user interface, user experience, graphic, and three-dimensional designers.
• Testers.
• Analysts.
• Content specialists, digital marketing professionals, and search engine optimization specialists.
• Administrators and specialists responsible for maintaining platforms and services.
• Online course instructors and mentors.

An important rule applies: a self-employed person cannot engage subcontractors or hire employees. The activity must be carried out personally.

Tax Rates and Taxation Features

The main professional income tax rates are:

• Four percent when working with individuals.
• Six percent when working with legal entities and individual entrepreneurs.

Other important features include:

• No tax declaration is required, as the tax is calculated automatically.
• There are no mandatory pension fund contributions, although voluntary contributions are possible.
• Companies that act as clients do not withhold personal income tax, as the self-employed person pays the tax independently.
• The tax is paid monthly based on a notification from the “My Tax” application.

For IT professionals, this represents a significant advantage, since the rates are lower than those under traditional individual entrepreneur tax systems.

Cooperation with Russian Companies and Foreign Clients

Russian companies actively work with self-employed contractors because:

• There is no need to pay social insurance contributions, which reduces payroll costs.
• Document flow is simple, as an electronic receipt from the “My Tax” application is sufficient.
• The risk of reclassification of the relationship as employment is minimized if formal criteria are observed.

Working with foreign clients is more complicated:

• Receiving payments from abroad is possible, but technically limited by financial instruments.
• Receipts are issued in the same way as when working with Russian clients.
• A foreign client is not formally considered a tax agent, which is convenient for both parties.

However, sanctions-related restrictions and currency control requirements complicate cross-border payments.

Limitations of the Professional Income Tax Regime for IT Specialists

Self-employment comes with several important limitations that must be considered:

• The annual income limit cannot be exceeded. Exceeding it results in automatic loss of status.
• It is prohibited to work for a former employer within two years, as this may be recognized as an attempt to avoid employment relationships.
• Hiring employees or outsourcing work to subcontractors is not allowed.
• Certain types of activities are restricted, such as resale of goods.
• For large companies, the regime may be unacceptable due to internal risk management policies.

For the IT sector, the main limitation is the inability to work in a team and the prohibition on involving assistants.

Practical Pros and Cons in Everyday Work

Key advantages:

• Fast registration without bureaucracy.
• Official cooperation with companies.
• Low tax rates.
• No reporting or accounting obligations.
• Simple document flow, as issuing an electronic receipt is sufficient.
• The ability to combine self-employment with salaried employment if the rules are followed.

Main disadvantages:

• A limited annual income threshold.
• No possibility to scale the business, build a team, or engage contractors.
• Increased risks when working with foreign clients.
• No automatic social insurance contributions, which reduces future pension benefits.
• The risk of reclassification as employment when working with a single company for an extended period.

Self-employment in Russia is a convenient tool for IT specialists at the beginning of their careers, for those working on small projects, or for professionals who prefer flexible arrangements. For larger-scale activity or international work, individual entrepreneur registration or alternative regimes are often required.

Self-Employment in Belarus: How the Professional Income Tax Works for IT Specialists

Belarus has a professional income tax regime that serves as a full-fledged self-employment option, allowing individuals to provide services without registering as individual entrepreneurs. Unlike alternative regimes, this tax truly suits the IT sector, as several key IT activities are included in the permitted list. This makes the regime popular among developers, testers, and specialists working on small projects or freelance assignments.

Permitted IT Services Under the Professional Income Tax

In Belarus, IT specialists may apply the professional income tax if they are engaged in:

• Website development.
• Software development, including mobile applications and custom solutions.
• Software testing.

This is a key distinction of the Belarusian regime: self-employed individuals are officially allowed to engage in full-scale IT activity, not only consulting or digital content creation.

How the Regime Works and How the Tax Is Paid

The mechanics of the regime are straightforward:

• Registration is completed through a mobile application.
• The self-employed person records provided services and issues an electronic receipt.
• The tax is calculated automatically.
• Payment is made on a monthly basis.

There is no reporting requirement, as the system calculates and generates the payable amount automatically.

Mandatory contributions to the Social Protection Fund are included in the tax rate and are calculated based on actual income received.

Working with Companies and Foreign Clients

Self-employed individuals in Belarus may work with legal entities if the provided services fall within the permitted list. This means that Belarusian companies can officially pay for:

• Website development.
• Software product creation.
• Software testing.

The situation with foreign clients is similar: there are no formal prohibitions, and payments can be received to an individual bank account in compliance with currency regulation rules.

Receipts for foreign clients are issued through the application in the same way as for Belarusian clients.

A Key Restriction: Three Years After Leaving a Former Employer

The professional income tax regime does not allow a situation where an employee resigns and immediately begins providing the same services to the former employer as a self-employed contractor. For lawful application of the regime:

• At least three years must pass from the date of dismissal.
• Otherwise, the income is treated as remuneration for employment duties rather than self-employment income.

This rule is designed to prevent schemes that replace employment relationships with civil law arrangements.

Other Restrictions of the Regime

Despite the expanded list of IT services, the regime remains suitable only for individual work:

• A self-employed person cannot hire employees.
• Work cannot be outsourced to subcontractors.
• There is an annual income limit. Income within the limit is taxed at a rate of ten percent. Income exceeding the limit is taxed at a rate of twenty-five percent. This rule applies only to income received from Belarusian companies.
• Activity must be carried out personally and on an ongoing basis, not as a disguise for employment relationships.

Advantages of the Professional Income Tax for IT Specialists in Belarus

• The ability to legally engage in software development, testing, and creation without registering as an individual entrepreneur.
• Minimal bureaucracy and no reporting.
• Tax is paid only on actual income, not as a fixed amount.
• The possibility to combine self-employment with primary employment, provided the three-year rule regarding the former employer is met.
• A suitable format for freelancing, project-based work, and international clients.
• Electronic receipts are acceptable as proof of income.

Disadvantages of the Regime

• It is not possible to hire assistants or build a team.
• The annual income limit restricts growth.
• There is a risk of reclassification as employment when working with a single client.
• The regime is not suitable for large-scale projects or permanent engagement with a major company.

Which Option Is More Advantageous for an IT Specialist: Russia vs. Belarus

The choice between self-employment regimes in Russia and Belarus depends on who the IT specialist works with and how the work is structured. The conditions in these countries differ not only in tax rates, but also in income limits, lists of permitted services, restrictions related to clients, and risks of reclassification of activities. There is no universal answer: much depends on the working model, income channels, and plans for scaling.

For Those Working Only with Local Clients

Russia

For cooperation with Russian IT companies, the professional income tax regime remains one of the most advantageous options:

• A six percent tax rate on income received from legal entities.
• Minimal bureaucracy.
• No mandatory social contributions.
• Simple document flow based on an electronic receipt.

Disadvantages: a limited annual income threshold, the inability to work with a team, and risks of reclassification of the relationship as employment.

Belarus

If the activity falls within the list of services permitted under the professional income tax regime, such as software development, website development, or software testing, the Belarusian regime is also convenient:

• Simple registration through a mobile application.
• Permitted cooperation with both Belarusian and foreign companies.
• Tax is paid only on actual income received.
• No mandatory contributions to the Social Protection Fund.

However, there are more restrictions:

• The income limit is lower than in Russia.
• Indicators of employment relationships are monitored more strictly.
• It is prohibited to work with a former employer for three years.

For work with local companies, the Russian professional income tax regime is usually more flexible and financially advantageous. However, in Belarus, self-employment is also a viable option if the activity fits the permitted list and the workload remains moderate.

For Those Receiving Income from Abroad

Russia

Russian self-employed individuals may work with foreign clients, but several challenges exist:

• Dependence on the availability of payment systems.
• Limited methods for withdrawing foreign currency.
• The need to comply with currency regulation requirements.
• Additional risks related to the current geopolitical situation.

Nevertheless, many freelancers continue to receive income through international platforms.

Belarus

The Belarusian professional income tax regime also allows income from abroad:

• Permitted IT services may be provided to foreign legal entities and individuals.
• Receipts are issued in the same way as for Belarusian clients.
• Banks allow such payments to be credited if the payment purpose is properly indicated.

However, there is a key limitation:

• If the activity does not fall within the list permitted under the professional income tax regime, for example DevOps services, system administration, or complex integrated development, working with foreign clients under this regime is not allowed.

For software developers, testers, and creators of software products, both countries allow cooperation with foreign clients. However, in Belarus, the restricted list of permitted services can become a serious barrier.

For Those Working with Marketplaces and Platforms

In the IT context, marketplaces usually refer to platforms such as Upwork, Fiverr, Toptal, as well as platforms for selling applications and digital products.

Russia

Self-employed individuals may:

• Work on international platforms, subject to payment-related limitations.
• Legally declare income under the professional income tax regime.
• Use Russian payment instruments or accounts in friendly jurisdictions.

The main issue is that access to foreign platforms is complicated by geopolitical factors and sanctions.

Belarus

Belarusian self-employed individuals may work with platforms if they:

• Provide IT services permitted under the professional income tax regime, such as development, testing, or website creation.
• Are able to receive income through banking instruments supported by the platform.

However:

• Some platforms do not operate with Belarus.
• Certain payment providers are restricted.
• If the activity goes beyond the permitted scope of the professional income tax regime, registration as an individual entrepreneur becomes necessary.

When working through marketplaces, both countries face limitations. In Russia, the main risks are related to payments, while in Belarus, they are tied to the limited list of permitted services.

For Specialists Working in Outsourcing or Project-Based Models

This is the most common working model in the IT sector.

Russia

The professional income tax regime is convenient:

• For short-term and medium-term contracts.
• For remote project-based work.
• For flexible freelancing or part-time engagement.

However:

• Long-term cooperation with a single company increases the risk of reclassification as employment.
• It is impossible to build a team or scale activities.

Belarus

The professional income tax regime is also suitable for project-based tasks if:

• The specific activity is included in the permitted list.
• The self-employed person does not effectively function as a staff member for a single client.
• The work does not require the involvement of other specialists.

Important:
Long-term work with one company may be interpreted as employment, especially if the cooperation includes a fixed schedule, ongoing tasks, internal tools, and participation in corporate processes.

Conclusion:
For project-based freelancing and outsourcing, both regimes are convenient. However, in Belarus, the list of permitted services plays a decisive role in determining whether work under the professional income tax regime is lawful.

Overall Conclusion

Russia offers greater flexibility for self-employed IT specialists due to a broader list of permitted services, lower tax rates, and simpler cooperation with companies.
Belarus also provides a functional self-employment regime, with key IT activities such as software development, website creation, and testing explicitly permitted. However, the list of services is narrower, income limits are lower, and control over employment relationships is stricter.
For international work, both countries are suitable, but each comes with its own limitations.

Conclusion

Choosing the optimal working format for an IT specialist, whether in Russia or Belarus, depends on many factors: the nature of projects, the geography of clients, development plans, and personal tolerance for bureaucracy. Self-employment regimes in both countries have their advantages and constraints. In Russia, the approach is more flexible and offers broader opportunities for independent work. In Belarus, the professional income tax regime provides a legal and relatively simple mechanism for engaging in software development, testing, and creation without registering as an individual entrepreneur.

The key takeaway is that there is no universally “best” regime. Each specialist chooses a solution that fits their own employment model. For some, minimal reporting is the priority; for others, official cooperation with companies or access to international platforms matters most. As a result, a careful assessment of conditions, tax burden, potential risks, and limitations becomes an essential part of professional planning.

Our team is ready to support you at every stage:

• Provide consultations on professional income tax regimes in Russia and Belarus.
• Assess which legal status best fits your working model.
• Assist with registration and formalization.
• Help build a secure and convenient model of interaction with clients.

If you want to work legally, with minimal risk and an optimized tax burden, we are ready to get involved and offer a solution tailored specifically to your needs.

How to contact us 

For more information or a consultation on choosing the optimal work arrangement or applying the professional income tax (PIT) regime in Russia or 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.