Taxes in IT Companies in Belarus and Russia 2025

With the active growth of the IT market, taxation remains one of the key factors in hiring, motivation, and company cost planning. For recruiters, HR managers, and IT team owners, understanding which taxes and contributions are paid by the employer and which are withheld from the employee in both Belarus and Russia helps to correctly calculate the “total cost” of a position, form competitive offers, and avoid unpleasant surprises when entering the job market.

In this article, we’ll compare the main types of expenses and withholdings from a practical standpoint: how much an employee really costs the employer, how much is deducted from the employee’s “net” salary, and which tax benefits are especially relevant for IT companies.

In short, the key differences are as follows: in Belarus, most individuals are subject to a relatively low 13% personal income tax rate, while the employer’s total burden includes significant social contributions that substantially increase payroll costs. In Russia, a flat personal income tax has traditionally been applied to residents, but in recent years progressive rates have been introduced for high earners. At the same time, employers pay considerable social insurance contributions that vary depending on the salary base and occupational risk category.

These basic proportions “low PIT + high employer contributions” vs “flat/partially progressive PIT + substantial employer contributions” define the overall direction of the differences we’ll explore in more detail below.

It is also important to understand the tax privileges and special regimes that affect IT companies. In Belarus, the Hi-Tech Park (HTP) residency status still provides a package of benefits and simplifications that can significantly reduce a company’s tax burden and change the “employee cost” calculation one way or another. Therefore, when comparing, it’s important to know whether a company operates within the extraterritorial HTP regime or under the general tax system.

From an HR perspective, this means that when evaluating an offer, it’s not enough to look at the “net” salary; it’s also worth clarifying whether the employer benefits from any special tax regime.

From this article, you’ll get clear calculations (employer’s tax burden vs take-home pay) and practical information you can use in preparing vacancies and salary benchmarks.

Tax Burden in IT Companies in Belarus

Let’s look at the main types of taxes and contributions, and determine the overall tax burden for a Belarusian employer hiring IT specialists.

Main Types of Taxes and Contributions

The tax system in Belarus for IT employees revolves around three main elements:

Personal Income Tax (PIT)
Contributions to the Social Protection Fund (SPF)
Mandatory insurance payments

These components determine how much an employee takes home and how much their employment really costs the company.

Personal Income Tax (PIT)

The base personal income tax rate for IT employees in Belarus is 13% (the same as for most other employees). The employer withholds this tax from the employee’s gross salary and transfers it to the state budget.

Thus, when a gross salary is quoted, the employee actually receives 87% of that amount after tax.

For most IT specialists employed under a labor contract, the standard rate applies, without reductions or preferential coefficients.

The tax base includes all income received in monetary or in-kind form, such as bonuses, performance awards, and material assistance (unless specifically exempted).

Belarus currently has no progressive income tax scale, which makes the system predictable and convenient for compensation planning, particularly for international companies.

Starting from 2025, however, a 25% PIT rate will apply to annual income exceeding 220,000 BYN.

Contributions to the Social Protection Fund (SPF)

The Social Protection Fund (ФСЗН) is the main source of social payments such as pensions, sick leave benefits, maternity benefits, and unemployment payments. These contributions are paid by the employer, not by the employee, and they significantly increase the real cost of employment.

As of 2025, the contribution rate is 34% of the payroll fund, including:

About 28% for pension insurance
The remainder for social insurance (e.g., temporary disability benefits)

These amounts are invisible to the employee, they receive the agreed net salary,but for the company, the actual cost of employment is roughly one-third higher than the gross salary.

For example, if a developer earns 3,000 BYN gross, the employer’s total cost, including SPF contributions, will be around 4,000 BYN.

Such a high level of social contributions is one of the key reasons companies seek tax benefits, optimize payment structures, or consider alternative collaboration models (for example, through individual entrepreneurs or EOR arrangements).

Additional Fees and Withholdings

In addition to PIT and SPF contributions, employers also make mandatory insurance payments to Belgosstrakh for workplace accident and occupational disease coverage.

The rate varies between 0.1% and 0.6% of the payroll fund, depending on the occupational risk category. For IT companies considered low-risk, the minimum rate applies.

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Distribution of Tax Burden Between Employee and Employer – IT Companies

Overall, the tax burden for IT companies in Belarus is as follows:

Employees pay a 13% personal income tax.
Employers additionally contribute approximately 34% to the Social Protection Fund (FSZN) and up to 0.6% to Belgosstrakh.

Thus, when planning hiring budgets, it is important to consider not only the “net” salary but also the hidden costs that determine the full cost of an employee for the company. This is why understanding the tax burden is a key factor when comparing hiring in Belarus with other countries in the region.

Features for HTP Residents

Being a resident of the High-Tech Park (HTP) is a key tool for tax optimization for IT companies in Belarus. It does not directly affect the employee’s income tax rate but significantly reduces the employer’s burden by allowing lower social contributions and exemptions from certain corporate taxes. For IT businesses, this often becomes a decisive factor when choosing between registering a company in HTP or operating under the general regime.

Benefits and Tax Rates

The personal income tax rate in Belarus is fixed at 13% for all employees, regardless of whether the company operates within HTP or outside it. This tax is withheld by the employer from the employee’s salary, so HTP residency does not affect it.

The main advantages of the HTP regime are seen at the company level. Residents are exempt from corporate profit tax and some other taxes, allowing more funds to be allocated to salaries and HR development. A more tangible benefit is the ability to calculate social contributions based on a reduced base. While the standard contribution rate to the Social Protection Fund (FSZN) is 34% of gross salary for all employers, HTP residency allows for a lower base.

How HTP Residency Affects the “Cost” of Hiring an IT Specialist

For HTP residents, social contributions are calculated differently: the company can pay them not on the full salary, but on the national average wage set by Belstat.

In practice, if a developer’s salary is 5,000 BYN and the national average wage is 2,000 BYN, an HTP resident company pays FSZN contributions only on 2,000 BYN instead of 5,000 BYN. At a 34% rate, this results in contributions of 680 BYN instead of 1,700 BYN.

This model significantly reduces the actual cost of hiring mid- and senior-level specialists. For businesses, it allows retaining talent without excessive costs, and for candidates, it is an incentive to choose HTP resident companies where more funds can be allocated to net salary and bonuses.

Why Non-HTP Companies Pay More Taxes – and How Much

Companies operating under the general regime cannot use the reduced base mechanism. They must pay 34% FSZN contributions on the actual payroll, regardless of salary levels.

Comparing two identical companies, one HTP resident and one non-resident, the difference in hiring a high-salary developer (e.g., 5,000–6,000 BYN) can reach 15–20%. For non-residents, the total cost per specialist is higher due to social contributions.

Thus, HTP participation not only reduces fiscal burden but also increases a company’s competitiveness in the labor market: it can offer the same net income at lower costs. This explains why most medium and large IT companies in Belarus prefer HTP residency.

Tax Burden in Russian IT Companies

Let’s examine the features of the tax burden on employers in Russian IT companies.

Main Taxes and Social Contributions

The Russian tax system for IT companies is largely similar in structure to Belarus but differs in rates and calculation principles. Like in Belarus, employers withhold personal income tax from salaries and independently pay social contributions to off-budget funds. For companies without special benefits, the total burden remains significant and directly affects the cost of hiring an IT specialist.

Personal Income Tax (PIT / NDFL)

In Russia, the personal income tax (NDFL) is the main tax withheld from salaries.

For Russian tax residents (those staying in the country for at least 183 days per year), the rate is 13% on annual income up to 5 million RUB and 15% on amounts exceeding this threshold.
For non-residents, the rate is higher — 30%, except for certain categories such as highly qualified specialists, who may apply the 13% rate.

As in Belarus, the tax is withheld by the employer and remitted to the budget with each payroll. For employees, this means that “take-home” salary figures in offers already account for PIT.

Progressive taxation is particularly noticeable for senior developers and top management with annual incomes above 5 million RUB, reducing their net salary compared to Belarus.

Employer Contributions: Pension, Medical, and Social Insurance

In addition to NDFL, Russian employers pay insurance contributions to off-budget funds. These contributions are fully borne by the company and are not deducted from the employee’s salary.

For 2025, basic rates for companies under the general regime are:

Pension insurance — 22%
Medical insurance (OMS) — 5.1%
Social insurance (FSS) — 2.9%

Total: 30% of the payroll.

Additionally, a contribution for work-related accidents may apply — on average 0.2–0.6%, depending on the risk class. IT companies usually use the minimal rate.

Impact on Total Company Costs

The overall employer burden in Russia is about 30–31% of the payroll for companies without special status. For example, with a developer salary of 200,000 RUB, the company effectively spends around 260,000 RUB monthly, including mandatory contributions.

This tax structure creates a substantial difference between the employee’s net salary and the total cost of the position for the employer. Higher incomes make this difference more significant, especially due to progressive NDFL.

For businesses, this necessitates careful compensation planning, accounting for both salaries and mandatory contributions, which occupy a significant share of total personnel expenses.

This is why Russian IT companies actively use special tax regimes and benefits (e.g., for accredited IT organizations), which help reduce the burden and make hiring more predictable. These benefits are discussed in the next section.

Tax Incentives for the IT Sector

Government support for the IT industry in Russia includes a range of tax incentives that significantly reduce the fiscal burden on employers. The most important of these is the preferential treatment for accredited IT companies, which allows them to pay reduced social insurance contributions and access additional benefits. These measures aim to stimulate the development of the domestic IT sector, increase its competitiveness, and retain qualified specialists within the country.

Exemption and Reduction of Social Insurance Rates

For IT companies with state accreditation, preferential social insurance rates apply. Instead of the standard 30% (22% for pension insurance, 5.1% for medical insurance, 2.9% for social insurance), these companies pay:

Pension insurance — 6%
Medical insurance — 0.1%
Social insurance — 0%

As a result, the total rate drops to 6.1% compared to the standard 30%. This nearly fivefold difference dramatically changes the economics of payroll. For example, for a salary of 200,000 rubles, instead of paying 60,000 rubles in contributions, the company pays only about 12,000 rubles.

Such reductions significantly lower personnel costs, allowing companies to allocate the savings toward higher salaries, employee training, product development, or marketing.

Requirements for Accredited IT Company Status

To benefit from these incentives, an organization must obtain state accreditation as an IT company from the Russian Ministry of Digital Development. The company must meet several criteria:

The main activity must involve the development, implementation, support, or testing of software and IT products.
Revenue from IT-related activities must constitute at least 70% of the company’s total income.
The company must be registered in Russia and employ at least seven staff members (more in some cases, depending on the type of activity).
Activities unrelated to IT, such as trading, brokerage, or leasing, should not be conducted at a significant scale.

Once accredited, the company automatically gains the right to apply reduced social insurance rates and access various additional support measures, such as participation in government programs, subsidies, grants, and tax holidays.

Practical Impact on Taxes and Competitiveness

In practice, these tax incentives make accredited IT companies among the most advantageous employers in Russia. With the same salary levels, payroll costs are roughly 20–25% lower than for non-accredited companies.

This allows them to offer more attractive compensation packages without increasing the overall budget, for example, by raising employees’ net income, providing bonuses, or improving working conditions. Additionally, these companies enjoy flexibility in HR strategy and can scale their workforce more easily without a sharp increase in tax burden.

In a competitive IT labor market with rising salaries, preferential tax treatment becomes a crucial tool for retaining specialists and planning expenses.

Comparative Analysis: Belarus vs. Russia

Let’s compare the overall tax burden structure and how it is distributed between employers and employees in Russia and Belarus.

Overall Tax Structure

When comparing the tax systems of Belarus and Russia, it is important to consider not only the rates but also how the tax burden is distributed between employers and employees. In both countries, the employer acts as a tax agent, withholding personal income tax from salaries and paying social contributions. However, the structure of these payments and their impact on total hiring costs differ significantly.

Who Pays More — Employer or Employee?

In Belarus, the main burden falls on the employer. Although the personal income tax rate is relatively low at 13%, social contributions to the Social Protection Fund (FSZN) can reach 34% of the gross salary. This means the “cost” of an employee to the company is roughly one-third higher than their pre-tax salary.

In Russia, the distribution is more balanced but still slightly favors the employer. Employees pay personal income tax at 13% or 15% (for annual incomes above 5 million rubles), while employers contribute about 30% of the payroll fund in social insurance. The ratio between personal and corporate burden is similar to Belarus, though the total contributions in Russia are slightly lower.

If we consider only the base rates, employers in Belarus generally pay more, especially if the company is not a resident of the High-Tech Park (HTP). In such cases, the total burden (taxes + social contributions) is higher than that of a non-accredited Russian IT company.

How the Tax Burden is Distributed

Structurally, both systems are similar:

Employees are responsible for personal income tax, withheld by the employer.
Employers fully cover social insurance contributions, which fund pensions, medical care, and social protection.

However, differences in the calculation of contributions produce different effects:

In Belarus, FSZN contributions are fixed, and non-HTP companies must pay on the full salary amount without base limits, making hiring highly paid specialists particularly costly.
In Russia, contributions are paid at 30%, but the base is capped: for 2025, once annual salary exceeds ~2.2 million rubles, the pension contribution rate decreases from 22% to 10%. Thus, the burden gradually decreases for high incomes.

For accredited IT companies in Russia, the preferential rate of 6.1% makes their tax model significantly lighter than in Belarus, even considering HTP status. As a result, in Russia, the share of taxes in the total cost of an employee for preferential employers may be less than 20%, whereas for Belarusian non-HTP companies it is around 45%.

Summary of Burden Distribution:

In both countries, personal income tax is 13% and withheld from the employee.
The main difference lies in the size and calculation rules of employer social contributions.
Without incentives, the overall IT business burden is higher in Belarus than in Russia.
With special regimes (HTP in Belarus and IT company accreditation in Russia), the Russian model remains lighter, while the Belarusian model still offers benefits compared to the general regime.

In summary, at the base level, Belarus places a heavier burden on employers, while in Russia, especially for accredited IT companies, the system is more balanced and favorable for hiring highly paid specialists.

Conclusion

Comparing the tax burden in IT companies in Belarus and Russia shows that while the systems are structurally similar, they differ in approach and real impact on business. In Belarus, the main burden falls on employers due to high FSZN contributions, though HTP residency can significantly reduce payroll costs. In Russia, base social contribution rates are lower, and accredited IT companies benefit from record-low preferential conditions, making hiring specialists economically more advantageous.

For companies operating internationally, these differences are important when planning budgets, choosing office locations, or hiring through EOR models. Correct calculation of the total cost of an employee helps to create competitive offers and retain talented specialists without exceeding budget limits.

Our team at Recruitment.by helps IT companies recruit qualified employees anywhere in Belarus, Russia, and other countries, taking into account tax, legal, and organizational factors. We can build an efficient team, optimize costs, and establish a hiring process that supports the growth of your business rather than hindering it.