Choosing the optimal tax jurisdiction as an IT professional is not only about today’s tax burden but also about long-term financial strategy. Many Belarusian IT entrepreneurs consider registering as a sole proprietor (SP) in Poland as a potentially more stable and predictable option. However, in practice, comparing taxes in Belarus and Poland is far more complicated than simply looking at the rates: the final amount depends on tax regimes, turnover, income structure, social security contributions, and real administrative costs.

This article explains how the tax burden differs for sole proprietors working in IT in Belarus and Poland. We review available tax regimes, compare mandatory contributions, break down calculation examples, and show in which situations each option may be more advantageous. The material is designed for those who want to understand the numbers, forecast their financial load, and choose the most efficient business model, whether staying in Belarus, moving to Poland, or combining different structures.

Tax Regime for Sole Proprietors in Belarus

When working in IT as an individual entrepreneur (SP) in Belarus, it is essential to understand which tax regimes are available, how they work, and which obligations they include.

SPs operating in the IT sector in Belarus face one key limitation: they may only work under the general taxation system, which means paying personal income tax at a 20% rate. Using the unified tax or simplified tax system is not allowed for IT services, legal regulations explicitly exclude such activities from eligible categories.

Below is a clear and concise breakdown of how income tax is calculated, which expenses can be deducted, and when payments must be made.

How the 20% Income Tax Is Calculated

Income tax for SPs on the general system is based on revenue.

The simplified formula:

Tax = (Income – Documented Expenses) × 20%

Income includes all payments received to the SP’s bank account or in cash as part of the business: service fees, royalties, consulting, tech support, software development, etc.

If the entrepreneur’s cumulative annual income exceeds 500,000 BYN, the income tax rate increases to 30%.

Which expenses can be deducted?

IT sole proprietors may reduce their taxable base by deducting actual, documented business expenses, such as:

• Purchase of computers, laptops, monitors
• Software, licenses, subscriptions (Figma, JetBrains, GitHub, cloud services, etc.)
• Internet and communications
• Office or coworking rent
• Bank fees
• Professional training
• Peripherals and hardware
• Outsourced services (accounting, legal support, etc.)

The more justified expenses, the lower the taxable income.

Income Tax Deadlines

SPs under the general taxation system must:

1. Submit quarterly tax returns

Usually by the 20th day of the month following the end of the quarter.

2. Pay the tax quarterly

Typically by the 22nd day after filing the return.

Example:
For Q1 (January–March), the return is submitted by April 20, and the tax is paid by April 22.

Summary of the Belarusian Model for IT SPs

• Rate: 20% income tax
• Base: net income reduced by documented expenses
• Reporting: quarterly
• Payment: by the 22nd day after the quarter
• Deductions: professional expenses — the main tax reduction tool

Additionally, SPs must pay contributions to the Social Protection Fund.

If the SP’s annual income is below the equivalent of 12 minimum wages, contributions are calculated as 35% of actual income. If income exceeds this threshold, contributions are paid based on 12 minimum wages at the same 35% rate.

The current minimum wage in Belarus is 726 BYN.
Starting January 1, 2026, it will be 858 BYN.

Thus, for income earned in 2025, contributions of 35% apply if the annual income is less than:
12 × 726 = 8,712 BYN.

Tax Regimes for IT Entrepreneurs in Poland

Poland remains one of the most attractive jurisdictions for Belarusian IT specialists due to flexible tax options, predictable administration, and broad opportunities for B2B work. Unlike Belarus, where IT SPs are limited to income tax only, Poland offers several regimes that an entrepreneur can choose depending on income level, type of activity, and expected burden.

Registration and Available Forms of Taxation

To work in Poland as a self-employed IT specialist, one typically registers a jednoosobowa działalność gospodarcza (JDG) — an equivalent of a sole proprietorship. This allows entering into B2B contracts and choosing a tax regime.

The main taxation options are:

1. Podatek liniowy (flat tax, 19%)

Suitable for higher-income specialists, as the flat rate does not depend on earnings. Business expenses can be deducted.

2. Skala podatkowa (progressive PIT: 12% and 32%)

Applicable when income is moderate or when the entrepreneur can use extensive deductions.
The first rate is 12% up to a defined annual threshold; above it, 32% applies.

3. Ryczałt od przychodów ewidencjonowanych (lump-sum tax)

For IT services, the rate is 12% of revenue.
Tax is calculated from turnover without deducting expenses, but for many high-income IT professionals, this is the most cost-effective option due to low administrative requirements.

Tax Rates and Income Thresholds

• 19% — flat tax
• 12% — PIT rate up to the threshold
• 32% — PIT rate above the threshold
• 12% — lump-sum tax on IT services (calculated on gross revenue)

Choosing the right regime depends on one’s business model: lump-sum works best with low expenses; the flat rate suits high revenues with deductible costs; the progressive scale is optimal when using deductions or benefiting from the reduced 12% PIT.

Mandatory ZUS Contributions: Amounts, Options, Relief Periods

Every entrepreneur in Poland must pay contributions to ZUS, the national social security system. This is a major component of the total tax burden and directly influences the choice of taxation regime.

Key ZUS contributions include:

• pension insurance
• health insurance
• sickness insurance (optional)
• accident insurance

Poland provides reduced-burden periods for new entrepreneurs:

1. Ulga na start — first 6 months

No social security contributions; only the health insurance payment applies.

2. Preferencyjny ZUS — next 24 months

Social contributions are calculated from a reduced base, significantly lowering monthly payments.

3. ZUS pełny — after 30 months

Full contributions based on the standard minimum base.
For some regimes (e.g., lump-sum), the health contribution is calculated as a percentage of income.

For IT specialists working under B2B contracts, the combined burden — tax + ZUS — is crucial, especially since the health contribution is not deductible from the tax.

Tax Deductions, Expenses, and Administrative Advantages

The Polish tax system allows entrepreneurs to significantly optimize their burden through:

• equipment purchases
• software and licenses
• office or coworking rent
• internet and communications
• business travel
• hardware amortization
• training and professional development

Under the flat tax or progressive tax, such expenses reduce the taxable base — especially beneficial for those with large recurring professional investments.

Poland’s administrative processes are highly digitalized: entrepreneurs manage accounting through online systems, issue invoices electronically, and access state services via profil zaufany. This reduces paperwork, minimizes errors, and makes the entire tax administration more transparent.

Comparison of Overall Tax Burden

Comparing the tax burden for an IT sole proprietor in Belarus versus Poland requires examining not only tax rates, but also expense structure, social contributions, administrative requirements, and the actual net income that remains after all payments. At first glance, the rates may appear similar, but the final amount of mandatory payments and the ease of doing business differ significantly.

Comparison of Tax Rates and Mandatory Payments

In Belarus, an IT sole proprietor operates exclusively under the general taxation system:

• The personal income tax rate is 20%, and if annual income exceeds 500,000 BYN, the rate increases to 30%.
• Social security contributions to the Social Protection Fund (FSZN) are calculated at 35% either from actual income (if it is below 12 minimum wages per year) or from a fixed base of 12 minimum wages.
  For 2025, this minimum base is 8,712 BYN.

In Poland, the entrepreneur can choose a suitable tax regime:

• Ryczałt — 12% of turnover.
• Linear tax — 19% of profit.
• Progressive PIT scale — 12% and 32%, depending on income thresholds.

Taxes are combined with ZUS contributions, where there are preferential periods (Ulga na start, Preferencyjny ZUS) and later a full rate, which becomes a substantial part of monthly expenses after 30 months. However, unlike in Belarus, most contributions are fixed rather than being a percentage of the annual income.

Tax Burden Comparison at €2,000 per Month

At an income of around €2,000 per month (approximately €24,000 per year):

In Belarus: The tax burden depends heavily on expenses.
If expenses are low, the entrepreneur pays 20% on nearly the entire amount plus mandatory FSZN contributions. With few expenses, the overall burden increases noticeably and might represent a large share of income.

If expenses are substantial (equipment, subscriptions, office rent), the taxable base decreases—but FSZN contributions remain mandatory and fixed after reaching the threshold, regardless of actual fluctuations in income.

In Poland: At the same income level, many IT specialists choose ryczałt because the 12% turnover tax can be more advantageous when expenses are low.
The linear 19% tax becomes attractive if the entrepreneur has significant deductible expenses—equipment, software, rent, travel.

It is important to note that the healthcare contribution (NFZ) does not reduce the taxable base, but it is not tied directly to total annual income the way FSZN contributions are in Belarus.

Overall, at an income of €2,000, Poland often provides a softer financial load due to the availability of flexible tax regimes and ZUS relief during the initial years of activity.

Impact of Expenses, Deductions, and Income Structure on the Final Amount

In Belarus

The primary tool for reducing tax burden is documented business expenses.
The more legitimate expenses an IT entrepreneur can deduct, the lower the taxable base becomes.
However, FSZN contributions are not reduced, even if income falls or if the entrepreneur invested heavily during a given period.

In Poland

Optimization opportunities are wider:

• Under the linear system, almost all business-related expenses are deductible.
• Under the PIT scale, various personal deductions are available.
• Under ryczałt, expenses are not deductible, but the low rate often makes this regime optimal when expenses are minimal.

Poland’s system adapts better to the specific business model:
High expenses favor the linear tax; low expenses favor ryczałt.

Administration and Bureaucracy: Where Is It Easier to Operate?

Belarus

Administration is formally straightforward:

• Quarterly reporting.
• Online submission of tax returns.
• Fixed deadlines.

However, the entrepreneur must maintain detailed expense documentation, handle accounting independently, and interact with tax authorities in case of audits or clarifications.

Poland

Administrative burden varies by regime:

• Under ryczałt, accounting is minimal: fixed rate, no expense documentation.
• Under linear or PIT scale, the accounting is more complex, but digital tools, electronic invoicing, automated systems, and the profil zaufany simplify the process significantly.

Overall, bureaucracy in Poland is lower, but accounting services are more expensive.

When It Is More Advantageous to Remain a Sole Proprietor in Belarus

Despite Poland’s growing popularity among IT entrepreneurs, there are still situations where working as a sole proprietor in Belarus is more financially and operationally convenient.
This is especially true for specialists with moderate income, stable contracts, and minimal administrative needs.

Scenarios with Low and Moderate Tax Burden

Belarus can be more favorable when:

1. Income is low or moderate (up to ~€2,000–2,500 per month)

At this level, the overall tax burden remains manageable, especially when the entrepreneur has enough documented expenses to reduce the taxable income.

2. A significant portion of income is spent on professional expenses

Large equipment purchases, subscriptions, office rent, and tools reduce the tax base. Higher expenses offset FSZN contributions.

3. The business does not plan rapid growth

If income remains far from the 500,000 BYN annual threshold, the 20% PIT rate stays unchanged. For many specialists with stable, modest income, this model works well.

Advantages of Simplified Administration

Even with the need to maintain expense records, Belarusian individual entrepreneurship is predictable:

• Quarterly, not monthly, reporting.
• Fully online declaration submission.
• No need to choose between multiple tax regimes IT services must use the general system, reducing the risk of mistakes.
• Administrative procedures are familiar and well-established.

For many, predictability and simplicity are valuable: the regime is fixed, the rules are clear, and tax optimization is achieved through expenses.

When Belarus Is a Rational Choice for an IT Specialist

Remaining an individual entrepreneur in Belarus makes sense when:

1. Clients are mostly in Belarus or the CIS

This avoids currency control issues, reduces transaction costs, and simplifies paperwork.

2. There is cooperation with Hi-Tech Park (HTP) companies as a contractor

Even though an entrepreneur is not an HTP resident and does not receive tax benefits, working with HTP companies offers:

• stable contracts,
• predictable cooperation,
• minimal legal risks.

Many HTP companies prefer local sole proprietors, ensuring a steady workflow without the need to create foreign entities.

3. There is no need for relocation or EU contracting

If operations are remote, income stable, and switching to an EU jurisdiction brings no strategic benefits, remaining in Belarus is rational.

4. Minimizing administrative costs is important

Polish accounting is more expensive, and ZUS contributions become significant after the preferential period.
For entrepreneurs with modest income and few transactions, the Belarusian system is simpler and cheaper.

When Poland May Be More Advantageous

Poland becomes an appealing jurisdiction for IT entrepreneurs not only due to flexible tax regimes but also thanks to administrative transparency, social protections, and direct access to European clients.
In many scenarios, the Polish system provides substantial financial and strategic benefits.

When the Polish Tax System Offers Financial Advantages

Poland is more favorable when the entrepreneur can select a tax regime that fits income level and expense structure. Unlike Belarus, where IT entrepreneurs are restricted to a single model, Poland offers three legitimate alternatives.

Poland is usually the better option when:

1. Expenses are low and income is high

Ryczałt at 12% of turnover is highly efficient for high-income IT freelancers with minimal costs.

2. Professional expenses are substantial

If equipment, software, office rent, or travel form a significant portion of the budget, the 19% linear tax can be more advantageous than Belarus’s 20%, especially when expenses reduce the taxable base significantly.

3. Income is growing and cooperation with international clients is expected

Higher earnings fit well into Poland’s flexible system.
You can switch tax regimes annually, optimizing as you go — something Belarus does not allow.

High Income, Regular Expenses, and Work with European Clients

Poland is typically the optimal choice when:

• monthly income exceeds approximately €3,000–4,000,
• recurring business expenses exist,
• work is conducted with European clients.

The advantages include:

• no currency controls,
• fast and inexpensive SEPA payments,
• clean legal framework for Western contracts,
• higher trust from clients.

Working through a Polish JDG is often perceived as a sign of business reliability and compliance with EU standards.

Additional Benefits: Social Protections and EU Jurisdiction Reputation

Along with financial advantages, Poland offers strategic non-financial benefits:

1. Full social protections

Through ZUS contributions, the entrepreneur gains access to:

• healthcare,
• pension system,
• maternity benefits,
• disability insurance.

This dramatically improves personal financial security—something Belarusian IEs often lack.

2. Strong reputation and legal stability

A business registered in the EU is a significant trust factor for clients in the US, Germany, the Netherlands, and Scandinavia.

3. Integration into the European business environment

Poland provides access to:

• EU banking,
• international payment systems,
• entrepreneurship support programs,
• relocation and residency opportunities.

This makes Poland not only a tax option but a strategic platform for professional growth.

Conclusion

The choice between operating as a sole proprietor in Belarus and registering a business in Poland depends on income level, expense structure, growth plans, and client geography.

For specialists with stable mid-level income and significant expenses, Belarus remains a predictable and convenient option with simple administration.

For those earning more, working with international clients, or seeking strategic benefits from operating in the EU, Poland offers flexible tax systems, advantageous conditions for high-income entrepreneurs, and additional social and reputational advantages.

If you are considering relocating, planning tax optimization, or determining which model fits your income and work format — our team can help.
We provide jurisdiction selection consulting, set up sole proprietorships in Belarus and Poland, support relocation, and help structure operations in a legal, safe, and financially efficient way.

How to contact us 

For more information or a consultation on jurisdiction selection, or set up sole proprietorships 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.