Month: July 2025
Termination by Mutual Agreement in Belarus
In the realm of labor relations, termination of employment is often perceived as a painful or conflict-laden process. However, there is a mechanism that allows both the employee and the employer to part ways without disputes, mutual claims, or formal complications — termination by mutual agreement. This method of ending an employment contract in Belarus is becoming increasingly common, especially in cases where both parties seek to maintain professional relations and avoid lengthy proceedings.
Termination by mutual agreement is considered one of the most flexible and amicable options: it does not require justification, offers room for negotiating terms (such as the date of termination and any payments), and can be carried out quickly. At the same time, both the employee and the employer need to be aware of the nuances involved, the documents that must be prepared, and the potential risks of overlooking important details.
This article will explain how to properly execute a mutual agreement termination, what steps need to be taken, what should be included in the written agreement, and how both parties can protect their interests.
What Is Termination by Mutual Agreement?
Termination by mutual agreement is one of the most flexible ways to end an employment contract. In this scenario, the employer and employee mutually decide to terminate the employment relationship. This option is considered neutral and does not imply any negative assessment of either party’s actions.
Unlike dismissal initiated by the employee or the employer, mutual agreement is based on the voluntary consent of both parties. There is no requirement to specify the reasons for termination, observe notice periods, or follow preliminary procedures. The parties themselves set the termination date, agree on possible severance or compensation, and formalize their agreements in writing.
This approach is particularly useful in situations where:
- Both parties aim to preserve a professional relationship.
- There is a need to terminate the employment quickly and without conflict.
- Additional arrangements need to be documented beyond standard termination procedures.
How Mutual Agreement Differs from Other Types of Termination
- Resignation by the Employee: Requires written notice within a prescribed period (usually one month or two weeks). The employer cannot expedite the process without the employee’s consent.
- Termination by the Employer: Must be based on specific legal grounds such as staff reduction or disciplinary issues and is often accompanied by legal disputes.
- Expiration of a Fixed-Term Contract: Happens automatically but does not allow for negotiation of termination terms.
In contrast, termination by mutual agreement is a controlled process that reduces the risk of disputes. This is especially important in business, where maintaining loyalty and reputation is key.
When Is Termination by Mutual Agreement Appropriate?
While mutual agreement termination is a universal tool, it is particularly useful in situations where it is important to maintain professionalism, minimize formalities, or promptly end an employment relationship. Here are some common scenarios where this approach is most effective:
At the Initiative of Either Party
A mutual agreement can be proposed by either the employee or the employer. For instance, an employee may want to leave sooner than required by law without serving a notice period, while an employer may need to fill the position more quickly. In such cases, both parties can agree on the termination date, compensation (if applicable), and conditions for ending the employment — ensuring flexibility and mutual benefit.
Alternative to Staff Reductions
If the company is planning a reduction in workforce, mutual agreement can serve as a more amicable and manageable alternative. The employer can part ways with employees without lengthy procedures and mandatory notices. Employees are often offered compensation or other benefits, making this option more attractive than formal redundancy.
Project Completion or Temporary Employment
When an employee was hired for a specific project or for a limited time without a fixed-term contract, mutual agreement offers a logical and formal way to conclude the working relationship. This helps avoid misunderstandings, formalize the end of the collaboration, and document the agreed terms.
Workplace Conflict or Changing Conditions
In cases of growing conflict, deteriorating work environment, or changes in working conditions (such as schedule, location, or duties), mutual agreement can provide a balanced solution. This allows both parties to save face, avoid labor disputes, and end the relationship in a civil and respectful manner.
In all of these situations, it is crucial to remember: a mutual agreement is a legal document reflecting the free will of both parties. Therefore, the decision should be made consciously and without pressure. The terms of the agreement should be clearly outlined in writing to avoid misunderstandings and ensure legal protection for both the employee and the employer.
Procedure for Termination by Mutual Agreement
Although termination by mutual agreement is considered the least formal method of ending an employment relationship, it must be properly documented. This is essential to protect the interests of both parties and to prevent potential disputes in the future. The procedure involves several key steps.
Step 1: Negotiations and Reaching an Agreement
The initiative may come from either the employee or the employer. During this stage, the parties discuss:
- The proposed termination date
- Whether or not the employee will serve a notice period
- The amount of any compensation to be paid
- Additional terms (e.g., confidentiality obligations, return of company property, etc.)
It is important that the agreement is reached voluntarily and that all conditions are clearly documented.
Step 2: Drafting and Signing a Written Agreement
The next step is to formalize the agreement in writing. Although this is sometimes skipped, it is strongly recommended to prepare a written document. The agreement should include:
- The legal ground for termination – mutual agreement
- The specific date of termination
- Any agreed-upon conditions
Both parties sign the agreement to confirm their mutual consent.
Step 3: Issuing a Termination Order
Based on the signed agreement, the employer issues a formal termination order. The order should be prepared using the standard format and must reference the legal basis for termination — mutual agreement — along with the relevant legal provision.
The employee must be familiarized with the order and sign to confirm receipt.
Step 4: Entry in the Employment Record Book
On the day of termination, the employee is issued their employment record book with an entry indicating termination by mutual agreement. The employee also receives all due documentation and the final financial settlement.
Termination Date and Notification Period
The law does not require a specific notice period for termination by mutual agreement. This means that the parties are free to set any convenient termination date — immediate or in the future. It is advisable to record this date in the written agreement to ensure clarity and flexibility, allowing the process to be adapted to the specific situation.
What Terms Can Be Included in the Agreement?
One of the key advantages of termination by mutual agreement is the ability to flexibly define the terms of termination. The agreement is not limited to the termination date — the parties may include additional provisions to ensure transparency and predictability.
Compensation and Severance Pay
While severance pay is not mandatory in the case of mutual agreement, the parties may agree on its amount and payment terms. This may include:
- A fixed amount (e.g., equal to one or several monthly salaries)
- Compensation for unused vacation time (if not paid separately)
- A performance-based bonus or incentive
- Other payments at the employer’s discretion
It is advisable to specify these arrangements in the agreement by stating the exact amounts, payment deadlines, and methods of payment.
Notice Period or Its Absence
As a general rule, no notice period is required when employment is terminated by mutual agreement. However, if the parties find it necessary, they may include the following provisions:
- The employee continues to perform job duties until a specific date.
- Completion of certain tasks before handing over responsibilities.
- Substitution of the notice period with another arrangement (e.g., paid leave followed by dismissal).
The key point is to clearly outline these terms in the agreement to avoid misinterpretation.
Additional Agreements
The termination agreement may also include other provisions that reflect the interests of both parties:
- Non-disclosure obligations (related to trade secrets or confidential information).
- Return of company property provided to the employee (equipment, access passes, uniforms, documents).
- Handover of ongoing work, completion of projects, or consulting support during a transitional period.
- Waiver of mutual claims — often included to protect both parties from future disputes.
Such provisions are particularly relevant when terminating key personnel, managers, or employees with access to sensitive information or client databases.
Pros and Cons of Termination by Mutual Agreement
Termination by mutual agreement is a voluntary process chosen by both parties. To make an informed decision, it’s important to understand the advantages and disadvantages it brings for both the employee and the employer.
For the Employee
Advantages:
- Flexible terms of dismissal. The employee may negotiate a convenient end date and avoid mandatory notice.
- Possibility of compensation. If agreed, the contract may include severance pay or a bonus.
- Neutral record in the employment history. The reason for termination is not negatively framed, unlike dismissal for disciplinary reasons.
- Opportunity to maintain professional relations. Especially important when leaving the company for personal reasons without conflict.
Disadvantages:
- No mandatory compensation. Unlike redundancy, the employer is not obliged to provide severance pay unless it’s specified in the agreement.
- No unilateral withdrawal. Once signed, the agreement cannot be revoked unilaterally.
- Limited guarantees. The employee forfeits certain benefits that might apply under other types of dismissal (e.g., layoff).
For the Employer
Advantages:
- Quick termination process. No need to observe notice periods as in dismissal at the employee’s initiative.
- Flexible approach. The parties may agree on asset return, handover conditions, or confidentiality terms.
- Lower risk of labor disputes. Since the termination is based on mutual consent, the risk of legal challenge is minimal.
- Smooth offboarding. Helps maintain employee loyalty and supports the company’s reputation as a responsible employer.
Disadvantages:
- Potential additional costs. Employees may only agree to terminate in exchange for compensation.
- Ambiguity within the team. Offering preferential terms to one employee may lead others to expect the same.
- Limited applicability. In conflict situations or when the employee is unwilling to compromise, mutual agreement may not be feasible.
In conclusion, termination by mutual agreement is a useful tool in cases where there is trust and a shared intent to end the employment relationship in a civil manner. When handled properly, it helps protect the interests of both parties and prevents unnecessary tension.
Risks and Common Mistakes
Despite the apparent simplicity of termination by mutual agreement, in practice it often leads to labor disputes and misunderstandings. To avoid negative consequences, it’s important to be aware of common mistakes and potential risks for both employees and employers.
Verbal Agreements Without Written Confirmation
One of the most frequent mistakes is relying on verbal promises. For example, an employer may promise to pay compensation, but the signed agreement contains no mention of it. In case of a dispute, only what is documented in writing will be considered. Therefore, all terms — the termination date, payment amounts, waiver of claims — must be clearly documented.
Pressure From One of the Parties
A mutual agreement implies voluntary consent from both sides. However, in practice, one party (often the employer) may pressure the other into signing by threatening dismissal “for cause” or by creating uncomfortable working conditions. Such behavior may be considered abuse of rights, and if the employee files a complaint, the agreement could be declared invalid in court.
To mitigate such risks:
- The employer should document that the employee signed the agreement voluntarily.
- The employee should take time to consider the decision and seek legal advice if necessary.
Incorrect Documentation
Mistakes in wording, inconsistent dates, missing orders, or incorrect entries in the employment record book can lead to legal complications. For example:
- An incorrect legal basis for termination.
- Discrepancies between the termination date stated in the agreement and the actual last working day.
- Lack of explicit consent from one of the parties.
Such issues may result in the termination being deemed unlawful, the employee being reinstated, or financial claims being filed.
To ensure that termination by mutual agreement proceeds smoothly and in full compliance with the law, both parties should act consciously, without pressure, and with attention to detail.
Conclusion
Termination by mutual agreement is a convenient and flexible tool for ending employment that allows both the employee and employer to agree on mutually beneficial terms. This approach is especially relevant in situations where maintaining loyalty, avoiding conflict, or setting individual exit conditions is important.
However, despite its simple wording, the procedure requires careful attention: documents must be correctly drafted, key conditions specified, and the decision made voluntarily and with full understanding.
If you are considering termination by mutual agreement — either as an employer or as an employee — our experts are here to help. Recruitment.by specialists will guide you through every step, prepare the necessary documentation, and ensure legal compliance throughout the process.
Contact us — we’ll make the transition clear, secure, and comfortable for everyone involved.
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Freelancing in IT: What It Means, Top Skills, and How to Find the Best IT Freelance Jobs
Freelancing in IT continues to gain traction as more professionals look for flexibility and diverse projects outside traditional office settings. But what does it mean to be an IT freelancer today? Whether you’re considering remote freelance IT jobs, exploring roles as a freelance IT project manager, or wondering how to get freelance IT work while still employed, the industry offers a wide range of options. From freelance IT developers and engineers to specialized IT consultants, freelancing opens doors to projects across the globe. This guide breaks down what it takes to succeed, the best IT skills for freelancing, and how to navigate the growing demand for freelance IT specialists. Discover practical tips on finding legitimate freelance IT jobs, building a strong portfolio, and understanding if it’s legal to freelance while employed, so you can make smart choices for your career in the IT sector.
What does it mean to be a freelancer
Being a freelancer in the IT field means working independently, offering your skills and expertise directly to clients instead of being tied to one employer. IT freelancers take on projects under short- or long-term contracts, handling everything from remote freelance IT jobs to on-site consulting. This self-employed model gives you the freedom to select your projects, set your rates, and control your workload. As a freelance IT specialist, developer, engineer, or project manager, you’re responsible for finding clients, managing payments, and maintaining professional relationships. Freelancing also means deciding your own schedule and often working remotely. Whether you’re exploring freelance IT jobs to earn extra income while employed or building a full-time business, freelancing in the IT sector offers a flexible path that rewards specialized skills and the drive to manage your own career.
How to start your career as a freelancer
Starting your freelance career in IT is more straightforward than many think, but it takes a smart approach and steady work. First, decide if freelancing suits you. This means giving up a stable paycheck for project-based income, which demands solid discipline and time management.
Next, define your core IT skills. Are you a freelance IT developer, engineer, or project manager? Research what businesses actually pay for. From remote freelance IT jobs to niche roles like freelance IT specialists, knowing your market gives you an edge.
Then, build a strong portfolio. Include projects, case studies, or even personal experiments that showcase your skills. Clients want proof, not promises.
Sign up on freelance platforms and networks. Many start by taking smaller jobs to build a reputation. Over time, raise your rates as you gather positive reviews and repeat clients.
Freelancing lets you control your schedule and career direction, whether part-time alongside a job or full-time. Just remember: finding work, managing finances, and keeping clients happy all fall on you. With a focused plan, freelancing in IT can be both profitable and rewarding.
Who can work as a freelancer
Freelancing is no longer limited to writers or artists. Today, professionals from many technical and creative fields take on freelance work to earn a living or supplement their income. Here’s how some key roles fit into the freelance landscape.
Graphic Designer
Freelance graphic designers help businesses create logos, social media posts, websites, marketing materials, and more. They rely on tools like Adobe Creative Suite and must have a strong portfolio to prove their skills. This flexibility allows them to work with startups, large agencies, or individual clients who need fresh visuals.
Engineer
Engineers can freelance by preparing blueprints, consulting on technical projects, or supervising builds. Many use tools like AutoCAD or industry-specific software. Companies often hire freelance engineers to fill short-term expertise gaps or to manage specialized parts of a project.
Web Developer
Freelance web developers build and maintain websites for businesses of all sizes. They handle everything from simple WordPress sites to complex platforms, writing code and ensuring site security. As companies focus on online growth, skilled freelance developers are always in demand.
App Developer
Businesses need mobile apps to reach their customers. Freelance app developers design, code, and launch applications across platforms. Their work directly helps brands engage with users on smartphones and tablets, often leading to long-term contracts if the initial project succeeds.
UX Designer
User experience designers work freelance by creating wireframes, testing interfaces, and improving how customers interact with websites or apps. They combine research and design to make sure products are user-friendly and meet business goals.
Social Media Manager
Freelance social media managers build brand presence online. They create posts, run ads, track analytics, and respond to followers. Many small companies and entrepreneurs hire freelancers to handle social media so they can focus on core operations.
QA Specialist
Freelance quality assurance testers check websites, apps, and software for bugs before launch. They create test plans, document issues, and retest fixes. This flexible work fits well into freelance schedules, especially as companies roll out updates.
Data Analyst
Companies hire freelance data analysts to process large data sets, build dashboards, and extract insights. Freelancers in this role help businesses make informed decisions without having to hire a full-time analyst.
AI Model Developer
As artificial intelligence becomes mainstream, freelance AI specialists are helping build models, train algorithms, and integrate machine learning solutions. These projects often pay well, given the advanced skills needed.
SEO Expert
Businesses depend on search traffic, and freelance SEO specialists help optimize websites to rank higher. They audit sites, identify keywords, and build strategies to drive organic traffic. Many freelancers in this space also write content or manage PPC campaigns.
In the end, almost any skill that delivers value to clients can be turned into a freelance service. Whether you’re a designer, coder, analyst, or marketer, freelancing gives you the chance to control your workload, rates, and professional growth. It’s a solid option for those who want more independence or to test business ideas without quitting their day job. With a good portfolio and consistent effort, freelancers in these fields can secure steady work and build strong client relationships.
What are the benefits of freelance work?
Easy to start
Freelancing usually doesn’t require special licenses or a lengthy setup. With just a skill, a laptop, and internet, most people can begin offering services right away.
Low starting costs
You avoid the high expenses of launching a traditional business. Most freelancers only need essential tools and software, keeping upfront costs minimal.
Extra income
Freelancing is a flexible way to earn money on the side. Many people do it part-time to supplement their main income without quitting their job.
Lower operating expenses
Freelancers don’t pay for office rent, employee benefits, or long-term overhead. This means more of what they earn stays in their pocket.
Workplace flexibility
You choose when and where to work. Whether from home, a coffee shop, or while traveling, freelancing puts your schedule and location entirely in your hands.
Experience
Freelancers handle diverse projects and clients, building a broad skill set and strong portfolio faster than in many regular jobs.
Independent management
As a freelancer, you pick your clients, set your rates, decide your workload, and have full control over your professional direction.
How to achieve success in freelancing
Building a successful freelance career is possible with the right approach and habits. Here’s what experienced freelancers do to avoid common mistakes and grow a stable business.
Don’t quit your permanent job right away
If you’re employed full-time, keep that steady income while you build your freelance work on the side. It takes time to find good clients and reach consistent earnings. Keeping your job lowers stress and gives you financial security during the slow months that often come early in freelancing.
Sign proper agreements
Always protect yourself by signing a clear contract before starting a project. A contract defines the scope, payment terms, deadlines, and ownership rights. This helps prevent misunderstandings and gives both you and your client confidence in the working relationship.
Maintain savings
Freelance income can fluctuate. Having savings ensures you can pay bills during slower periods or if a client ends a contract unexpectedly. A financial cushion also gives you room to be selective with clients, instead of accepting underpaid work out of urgency.
Develop a strong portfolio
Your portfolio is the main tool that shows clients you can deliver. Include examples of your best work, case studies, or results from past projects. Even small or personal projects can help fill gaps when you’re starting out. Keep it updated as you complete new work.
Continuously improve your skills
Freelancers stay competitive by learning new tools, trends, or best practices in their field. Whether you’re a graphic designer, web developer, or SEO expert, taking courses or attending workshops boosts your value and lets you offer more to clients.
Communicate clearly
Clear communication avoids misunderstandings and builds trust. Ask questions if something isn’t clear, confirm timelines, and keep clients updated. This shows professionalism and can lead to repeat work or referrals.
Seek feedback
After a project ends, ask clients what they thought of your work. Feedback helps you spot areas to improve and also shows clients you care about delivering quality. Over time, this strengthens your reputation and helps you grow a steady freelance business.
By starting carefully, protecting yourself with contracts, saving money, building a portfolio, investing in your skills, communicating well, and using feedback to get better, you’ll set a strong foundation for long-term success in freelancing.
Conclusion
Freelancing gives professionals across IT, design, engineering, and many other fields the chance to build careers on their own terms. It offers freedom, a wide variety of projects, and the ability to set your own path. But success in freelancing relies on careful planning, clear agreements, continuous skill development, and disciplined financial habits. Whether you’re starting part-time or growing a full freelance business, these principles help secure long-term stability.
If you’re in Belarus and need support hiring skilled employees, whether freelance or permanent, we can help. Our team specializes in finding qualified talent tailored to your needs, making the hiring process straightforward and efficient.
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If you contact us by the email we guarantee that you will receive a feedback from us within 2 (two) hours on any business day and within 6 (six) hours on any other day (holidays etc.).
Penalties for Tax Evasion by Sole Proprietors and Self-Employed Individuals in IT
In Belarus, working in the IT sector has long gone beyond traditional employment contracts. Many developers, designers, analysts, and other professionals prefer more flexible arrangements, registering as sole proprietors or self-employed individuals. This approach is especially convenient when working with international clients: simplified reporting, minimal bureaucracy, and the ability to work independently.
However, with tax freedom comes tax responsibility. Whether you operate as a sole proprietor (SP) or a self-employed individual, you are legally required to calculate and pay taxes properly and on time. Failure to meet these obligations can result in penalties, including fines, late fees, and even restrictions on business activity. Even unintentional violations can lead to serious consequences, especially if discovered during an audit or through interagency data exchange.
In this article, we’ll look at the tax obligations for SPs and self-employed individuals in IT, the risks of failing to pay or delaying tax payments, the types of penalties and enforcement measures that may apply, and how to stay compliant with tax authorities.
Tax Regimes for Sole Proprietors and Self-Employed Individuals in IT
IT professionals in Belarus can choose from several tax schemes depending on their work format, income level, and preferred reporting complexity.
Sole Proprietors: Income Tax and Unified Tax
Sole proprietors in the IT field may be subject to income tax (relevant when working with legal entities and other SPs). This applies to services such as website development, installation (or configuration) of computers and software, computer and device repair, maintenance, and training on personal computers, laptops, tablets, or smartphones (excluding official educational programs).
Tax rate:
Sole proprietors pay personal income tax at a rate of 20%. Tax must be paid quarterly and annually. The calculation may be revised each year.
The unified tax is paid at rates that vary depending on the SP’s place of registration.
Self-Employed Individuals: Professional Income Tax (PIT) and Unified Tax
Individuals can operate without registering as sole proprietors and instead provide IT services under the Professional Income Tax (PIT) regime or Unified Tax, if services are rendered to individuals. Before choosing a tax regime, it’s recommended to compare options to determine which is more financially beneficial. Our consultants can assist with selecting the optimal tax structure.
PIT:
Individuals providing remote IT services (e.g., programming, testing, setup, design) over the internet can choose the PIT regime.
Tax rate: 10% on income up to BYN 60,000 (including from companies and SPs, both domestic and foreign). If income exceeds this threshold, 20% is applied to the excess amount.
PIT automatically includes contributions to the Social Protection Fund (SPF): 60% of the tax paid goes toward the pension system.
Unified Tax:
When providing services to individuals — including foreigners — such as website development, computer/software setup, computer repair and maintenance, or basic IT training (excluding accredited education programs), individuals may opt for the Unified Tax.
Tax rates vary depending on the place of tax registration.
- Minsk: BYN 538/month — the highest rate.
- Regional cities and Minsk region: BYN 496/month.
- Other large towns (e.g., Baranovichi, Bobruisk, Borisov, Zhlobin, Zhodino, Lida, Mozyr, Molodechno, Novopolotsk, Orsha, Pinsk, Polotsk, Rechitsa, Svetlogorsk, Slutsk, Soligorsk): BYN 469/month.
- All other areas: BYN 238/month.
Types of Taxable Income
For both tax regimes, the main sources of income for IT professionals include:
- Fees for services and contract work (e.g., development, consulting, design);
- Working with foreign clients — allowed under both SP and self-employed regimes;
- Payments under service agreements and other civil contracts;
- Any IT work or service that meets the criteria of the selected regime: remote, independent, and not location-specific.
What Is Considered Tax Evasion for Individual Entrepreneurs and Self-Employed Professionals in the IT Sector
For individual entrepreneurs (IEs) and self-employed individuals in IT, it’s essential to understand that violating tax obligations can lead not only to additional tax assessments but also to fines, penalties, suspension of activity, and other consequences. Tax violations aren’t limited to complete failure to pay taxes—they may also include technical mistakes in reporting and deadlines. Let’s review the main scenarios:
1. Complete Failure to Pay Taxes
If a person earns income from IT activities (e.g., through contracts with clients in Belarus or abroad) but is not registered with the tax authority and does not pay taxes as required, this is considered a serious violation. Such conduct may be classified as operating without registration or deliberately evading taxation.
Common examples include:
- Working “off the books” without registering as an IE or choosing a taxation regime (e.g., not registering as self-employed through the “Profitable Income” mobile app).
- Deliberately ignoring tax obligations, even when client payments are received in the bank account.
2. Hiding Part of the Income (“Working in the Shadows”)
Even if officially registered as an IE or self-employed, individuals must report all income in the tax app or declarations. Failing to declare part of the income (e.g., when some client payments bypass the accounting system) is also considered tax evasion.
Typical cases:
- Underreporting actual revenue.
- Incomplete declaration of foreign currency earnings.
- Receiving payments in cash or to third-party accounts without proper reporting.
3. Declaration Errors
Sometimes violations happen unintentionally—due to inattention, lack of financial literacy, or technical glitches. However, even accidental mistakes do not exempt one from liability.
Common examples:
- Incorrect income or expense figures in tax returns.
- Omitting certain transactions from declarations.
- Choosing the wrong tax base.
- Filing a return for the wrong reporting period.
Note: If such errors result in underpayment, the tax authorities have the right to recalculate the amount due and apply fines and penalties.
4. Late Filing or Late Payment
Other common violations include:
- Missing the deadline for submitting a tax return (quarterly or annually, depending on the regime).
- Delayed tax payment—even by one day.
Even if the amount of tax is calculated correctly, a payment delay can lead to penalty interest and, in some cases, administrative fines.
Liability for Tax Evasion
Failure to meet tax obligations is strictly monitored in Belarus. Even minor delays can trigger financial sanctions, while serious or repeated violations may result in criminal liability. Here’s what may happen to IEs and self-employed IT professionals.
Fines: Amounts and Calculation Rules
If tax evasion or underpayment is detected, the following penalties may apply:
- For Individual Entrepreneurs:
A fine of 40% of the unpaid tax, but no less than 2 base units (currently 84 BYN). - For Self-Employed Individuals (in cases of accidental error):
A fine is applied if the unpaid tax exceeds 1 base unit (42 BYN). In that case, the fine is 15% of the unpaid amount, but not less than 0.5 base units (21 BYN).
Important: If the IE or self-employed person voluntarily corrects the error and pays the outstanding tax before a tax audit or formal request from the tax inspector, no fine is imposed.
- For Intentional Tax Evasion by Self-Employed Individuals:
The fine is much higher—40% of the unpaid tax, but no less than 10 base units (420 BYN minimum).
If repeated within one year of the first penalty, the fine increases to 100–200 base units (4,200–8,400 BYN).
The final amount is determined by the tax authority based on factors such as intent, mitigating circumstances, and voluntary correction.
Penalty Interest (Late Fees)
Penalty interest is charged for each day of delay in paying taxes, starting from the day after the due date. These penalties continue until the debt is fully paid and can significantly increase the total amount owed, especially if the delay is lengthy.
The rate is based on the refinancing rate, so it may vary depending on economic conditions.
Note: Penalty interest is not charged on fines—only on the original unpaid tax.
Possible Suspension of Activities
If a taxpayer ignores requests from the tax authorities, such as failing to submit reports, disregarding debt notifications, or obstructing audits, the tax office may temporarily suspend their activities.
This can include:
- Freezing the bank accounts of an individual entrepreneur (IE) or self-employed person;
- Restricting the ability to perform certain financial transactions.
Such measures are typically taken after an official warning has been issued and in the absence of voluntary attempts to resolve the issue.
Administrative and Criminal Liability
In less severe cases of tax non-compliance, administrative fines may be imposed on individual entrepreneurs and self-employed individuals.
Criminal liability may arise in cases involving particularly large tax evasion or repeated actions intended to conceal income. Penalties can include heavy fines, correctional labor, and in exceptional cases restrictions on freedom.
Criminal charges are especially relevant in cases involving deliberate concealment of income, the use of straw persons, fake contracts, or other schemes aimed at tax evasion.
How Tax Authorities Detect Violations
Modern technology and process automation allow the Belarusian tax authorities to effectively monitor the activities of individual entrepreneurs and self-employed workers, including those in the IT sector. Even remote work and income received from abroad do not shield violators from detection. Below are the main tools used to identify cases of tax evasion.
Collaboration with Banks: Account Activity Monitoring
One of the primary sources of information for the tax authorities is banking data. Banks are required to provide information upon request, including details of transactions on the accounts of individuals and IEs.
If a person regularly receives funds from legal entities, foreign companies, or with notes such as “payment under contract,” this may attract the attention of the tax office, particularly if the recipient is not registered as an IE or self-employed, or fails to report such income properly.
Cross-checking with ERIP and Payment Apps
Many IT professionals receive payments via the ERIP system or mobile payment services, including the official “Profdohod” app. The tax office may compare:
- Income registered in the app;
- Actual payments received via ERIP;
- Discrepancies suggesting unreported systematic activity.
A mismatch between declared income and actual incoming payments is a common trigger for a tax audit.
Monitoring of Foreign Economic Activity
IT professionals working with foreign clients often receive foreign currency revenue, which passes through banks and is monitored under the currency control system. The tax office tracks:
- The presence of foreign currency inflows;
- The existence and proper registration of contracts with non-residents;
- Correct reporting of such operations.
If a person frequently receives international payments but is not registered or fails to pay taxes, there is a high likelihood of an inquiry into the legality of their business activities.
Possible Suspension of Activities
If a taxpayer ignores requests from the tax authorities, such as failing to submit reports, disregarding debt notifications, or obstructing audits, the tax office may temporarily suspend their activities.
This can include:
- Freezing the bank accounts of an individual entrepreneur (IE) or self-employed person;
- Restricting the ability to perform certain financial transactions.
Such measures are typically taken after an official warning has been issued and in the absence of voluntary attempts to resolve the issue.
Administrative and Criminal Liability
In less severe cases of tax non-compliance, administrative fines may be imposed on individual entrepreneurs and self-employed individuals.
Criminal liability may arise in cases involving particularly large tax evasion or repeated actions intended to conceal income. Penalties can include heavy fines, correctional labor, and in exceptional cases restrictions on freedom.
Criminal charges are especially relevant in cases involving deliberate concealment of income, the use of straw persons, fake contracts, or other schemes aimed at tax evasion.
How Tax Authorities Detect Violations
Modern technology and process automation allow the Belarusian tax authorities to effectively monitor the activities of individual entrepreneurs and self-employed workers, including those in the IT sector. Even remote work and income received from abroad do not shield violators from detection. Below are the main tools used to identify cases of tax evasion.
Collaboration with Banks: Account Activity Monitoring
One of the primary sources of information for the tax authorities is banking data. Banks are required to provide information upon request, including details of transactions on the accounts of individuals and IEs.
If a person regularly receives funds from legal entities, foreign companies, or with notes such as “payment under contract,” this may attract the attention of the tax office, particularly if the recipient is not registered as an IE or self-employed, or fails to report such income properly.
Cross-checking with ERIP and Payment Apps
Many IT professionals receive payments via the ERIP system or mobile payment services, including the official “Profdohod” app. The tax office may compare:
- Income registered in the app;
- Actual payments received via ERIP;
- Discrepancies suggesting unreported systematic activity.
A mismatch between declared income and actual incoming payments is a common trigger for a tax audit.
Monitoring of Foreign Economic Activity
IT professionals working with foreign clients often receive foreign currency revenue, which passes through banks and is monitored under the currency control system. The tax office tracks:
- The presence of foreign currency inflows;
- The existence and proper registration of contracts with non-residents;
- Correct reporting of such operations.
If a person frequently receives international payments but is not registered or fails to pay taxes, there is a high likelihood of an inquiry into the legality of their business activities.
Client Complaints and Automated Data Analysis
Tax violations can also be detected through other channels, including:
- Complaints from clients, partners, or counterparties, especially in the context of disputes;
- Data received from other government agencies, such as the Social Protection Fund or the migration service;
- Automated data analysis, the tax authorities use software tools to cross-reference information from various sources and detect inconsistencies.
Particular attention is paid to individuals who show signs of engaging in business activities without proper registration.
Conclusion
Working in the IT sector as a sole proprietor or self-employed specialist offers freedom and flexibility, but also requires a high level of responsibility, especially when it comes to tax compliance. Failing to pay taxes, even due to negligence or misunderstanding, may result in fines, penalties, or restrictions on business activities. Repeated violations or deliberate tax evasion can lead to administrative or even criminal liability.
To avoid negative consequences, it’s important to:
- Register with the tax authorities in a timely manner;
- Choose the appropriate tax regime;
- Accurately track income and expenses;
- File tax returns and pay taxes without delay;
- Seek professional advice when needed.
Tax discipline is not just a legal obligation, it’s a foundation for sustainable business growth. The more transparent your operations and financial records, the fewer risks you face and the more confidently you can focus on your work.
The Recruitment.by team supports IT specialists and entrepreneurs at every stage, from choosing the right registration format to building transparent tax processes. We help you focus on your core work by handling the routine and minimizing risks, professionally, precisely, and on time.
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