IT Taxes in Belarus vs Poland

Belarus and Poland are two countries increasingly becoming the focus of attention of IT companies due to their unique business conditions. One of the key topics influencing the choice of jurisdiction for startups, freelancers, and large technology companies is taxation. Each country offers tax benefits and schemes that can significantly affect business income and costs. In this article, we will compare the tax systems of Belarus and Poland to help you determine which countries may be the best option for your IT company or professional activity.

Taxation Features of IT Companies in Poland

In Poland, tax regulation for IT companies has characteristics that are aimed at supporting innovative businesses and developing the technology sector. Here are the main aspects of taxation of IT companies in Poland:

1. Income Tax (CIT — Corporate Income Tax):

CIT rates:

• 19% is the standard income tax rate.
•  9% is a reduced rate for small businesses with an income of up to 2 million euros per year (provided that these are the first 2 years of the company or it corresponds to the status of a small/medium business).

IP Box (Innovation Box):

IT companies that develop software or create intellectual property (IP) can use a 5% discount rate on income from qualified IP.

Qualified types of IP: patents, software copyrights, industrial design, etc.

It is imperative to prepare detailed documentation that confirms income from IP.

2. VAT — Value Added Tax:

VAT rate:

• The standard rate is 23%.
• If services meet the export criteria and are exported within or outside the EU, a 0% VAT rate (exemption) is applied.

Features for IT companies:

Programming services, consulting, technical support, and software development are often classified as service exports and may be exempt from VAT.

To work with clients from the EU, you need to register with the VIES (VAT Information Exchange System).

3. Payroll Tax and Social Contributions (ZUS):

IT companies, like other employers, must pay employees social contributions. Basic rates:

• Social insurance:
  – Pension fund — 19.52% (divided between the employee and the employer).
  – Medical insurance — 9% (deducted from the employee’s salary).
  – The labour fund is 2.45% (at the employer’s expense).

Features for IT freelancers and B2B employees:

Many IT specialists work under B2B contracts, where they pay taxes and ZUS themselves. It reduces the tax burden, especially when using preferential rates.

4. Research and Development Benefits (R&D Tax Relief):

Companies engaged in innovative activities (software development, technology) can use tax deductions:

• Deduction of up to 200% of R&D expenses (labour costs, materials, equipment, licenses, etc.).
• Combining the deduction with the IP Box to increase tax advantages.

5. Support Programs and Subsidies:

The Polish Investment and Trade Agency (PAIH) platform offers grants and subsidies to IT companies.

Participation in Special Economic Zones (SEZ) or Polish Investment Zones (PIZ):

• There is a possibility of full exemption from CIT for up to 15 years, depending on the region and the nature of the investment.

6. Special Economic Zones (SEZ):

IT companies operating in the SEZ can expect tax benefits, including:

• Full exemption from CIT for a certain period.
• Benefits include the rental of premises and access to subsidies.

7. Single Tax Regime for Startups:

• Ulga na start — exemption from social contributions (ZUS) payment for new companies during the first 6 months.
• Simplified tax regimes are provided for companies that meet the startup criteria.

An Example of an IT Company

If a company has developed software and sells it as a license, it can:

1. Use IP Box and tax revenue from licenses at a rate of 5%.

2. Apply R&D benefits to reduce the tax base.

3. When exporting licenses outside the EU, use the 0% VAT rate.

Taxation Features of Individual Entrepreneurs in the IT Sector in Poland 

The specifics of taxation of individual entrepreneurs in the IT sector in Poland depend on the chosen form of taxation. Let’s look at the main options and their tax aspects:

1. General Taxation System (based on a progressive scale)

Tax rates:

• 12% for income up to 120,000 zloty per year (approximately 28,118.40 euros).   
• 32% for incomes over 120,000 zloty per year.  

Tax base: Net profit (income minus expenses).  

Features:

• IT specialists can write off expenses for equipment, office rent, Internet, software, etc.
• The possibility of applying tax deductions such as social security expenses (ZUS).  

Advantages:  

• It suits entrepreneurs with high expenses who want to reduce their tax base.  

Disadvantages:  

• A high tax rate for incomes above 120,000 zlotys.  

2. Single Tax (fixed rate income tax)

Tax rate: 19% of net profit.  

Tax base: Net profit (income minus expenses).  

Features:

• IT professionals often choose this form because of the predictable tax rate.  
• The ability to write off expenses with a progressive scale.  

Advantages:  

• A fixed-rate, regardless of income level.  
• Convenient for high incomes.  

Disadvantages:  

• There are fewer tax benefits compared to the progressive system.  

3. Fixed Tax Rate

Tax rate:

• 12% for most IT services.
• 8.5% for some activities (for example, technical support).  

Tax base: Gross income (excluding expenses).  

Features:

• It is impossible to write off expenses.  
• It is convenient for specialists with low operating costs.  

Advantages:  

• Ease of tax calculation.  
• Suitable for those who work on fixed-pay contracts.  

Disadvantages:  

• With high operating costs, this option may be less profitable.  

4. Single Social Contribution (ZUS)  

All individual entrepreneurs are required to pay contributions to the social insurance system (ZUS), regardless of the form of taxation.  

The amount of contributions:  

• About 1418 zlotys per month (in 2025).  That’s about 336 euros.

The possibility of applying for benefits:

• Small ZUS Plus — reduced contributions for entrepreneurs with income below a certain threshold.  
• Benefits for new entrepreneurs in the first 6 months (“Ulga na start”).  

5. Additional Taxes and Fees  

VAT (VAT):  

• The total rate is 23%.  
• For some IT services, reduced rates or VAT exemptions are possible.  
• VAT exemption is available for entrepreneurs with incomes up to 200,000 zlotys per year, which is approximately 47,485 euros per year.
• There are no local taxes for individual entrepreneurs.  

An Example of Choosing a Tax System for an IT Specialist  

1. Progressive scale: If you have high expenses (equipment, rent, travel) and income below 120,000 zloty.  

2. Single tax: If you have high incomes (over 120,000 zloty) and moderate expenses.  

3. Fixed rate: If expenses are minimal and income is stable and independent of costs.  

Taxation Features of the IT Sector in Belarus  

The taxation system for the IT sector in Belarus depends on whether the person is a resident of the Hi-Tech Park (HTP). HTP residents enjoy a number of tax benefits, while non-residents enjoy standard tax regimes. Let’s consider the key features of taxation for all categories.  

Taxation of IT Companies that are Not HTP Residents  

1. Simplified Taxation System (STS) 

Companies can apply the STS if they meet the established criteria:  

• The average number of employees for the first 9 months of the year is no more than 50 people.  
• Gross revenue for the specified period is no more than 2,625,000 Belarusian rubles (approximately 770,000 euros).  
• The STS replaces several taxes, particularly income tax, VAT, real estate tax, and environmental tax. Of course, there are several exceptions when these taxes must be paid.

• With the STS, the tax base is formed based on gross revenue, and the tax rate is 6%. Taxes are paid quarterly.  

2. General Taxation System 

Companies operating under the general system pay the following taxes:  

1. Income tax:  

• The basic rate is 20%.  
•  The rate for high–tech products of our production is 10%.  

2. VAT:  

• The rate is 20%.  

It is used both for the domestic market and for the import of goods.  

3. Income tax on foreign organizations:

• The tax on foreign organizations’ income is 15%, applied to services such as web hosting, data processing, advertising, and others.  

Belarus has international agreements with several countries (for example, Austria, the United Kingdom, and the United Arab Emirates) that can exempt foreign companies’ income from taxation.  

3. Taxation of HTP Resident IT Companies  

HTP resident companies do not have the right to apply for the STS but enjoy significant tax benefits:  

1. Income tax:  

• Full income tax exemption, except when the company acts as a tax agent.  

Special rates:

• 0% if the profit has not been distributed for 5 years.  
• 6% or 12% for distributable profits, depending on the conditions.  
• The tax rate on gross profit from operations with digital tokens of Hi-Tech Park residents is 9%.

2. VAT:  

• VAT exemption for sales within Belarus.  
• VAT is not paid when buying a number of services from foreign companies (for example, advertising and hosting) if they do not have representative offices in the country.  

3. Income tax on foreign organizations:

• The zero rate applies to certain types of income, including the sale of shares in HTP companies and data processing.  
• The tax on dividends for foreign owners is 5%, or the rate established by an international agreement.  

Individual Entrepreneurs in the IT Sector  

Individual entrepreneurs in the IT sector cannot apply a single tax. Income tax is paid at the rate:

• 20% if income does not exceed 500,000 Belarusian rubles per year (approximately 86,793 euros).   
• 30% – when income exceeds this limit.  

Individual entrepreneurs are eligible for tax deductions and can account for expenses related to their activities.  

Self-Employed in the IT Sector 

Self-employed people working in the IT sector pay tax on professional income:  

• 10% – with an annual income of up to 60,000 Belarusian rubles (approximately 17,455 euros).  
• 20% – if this threshold is exceeded.  

This category includes professionals who provide services over the Internet, such as graphic design, software development and testing, and software configuration and repair.

Comparison of Tax systems for the IT sector in Poland and Belarus

Benefits in HTP (Hi-Tech Park)

Belarus offers Hi-Tech Park (HTP) residents a unique tax regime that favourably distinguishes the country. There is no similar regime in Poland, but there are certain benefits for the IT sector.  

Corporate tTaxes  

Outside of the HTP, the income tax rate in Belarus is 20%, which is higher than in Poland. The VAT rate in Belarus is also 20%, slightly lower than the Polish level. In Poland, IT companies and startups can apply reduced corporate tax rates of 9% and only 5% when selling intellectual property.  

Support for R&D (Research and Development)

Belarus offers government subsidies and benefits for implementing innovative projects. However, unlike Poland, which provides for a tax deduction of up to 200% on R&D, Belarus has no such opportunities.  

Individual Entrepreneurs  

Belarusian individual entrepreneurs in the IT sector can only work under the general taxation system, where the income tax is 20%. In Poland, individual entrepreneurs in the IT sector can choose a tax system that allows them to use more favourable rates—12% or 5%.  

Conclusion  

Poland provides a wider range of tax optimization tools, especially for companies engaged in R&D and innovation. At the same time, Belarus focuses on benefits for HTP residents, creating favourable conditions for IT companies focused on exporting software and services. The choice between countries depends on the company’s strategic goals, level of innovation, and business structure.