Aid areas and end of validity of the regional aid map: consequences

Since 1 January 2022, there is temporarily no longer a regional aid map for Belgium. Consequently, large enterprises can no longer apply for the tax aid measure for aid regions since that date. 

Which tax aid measure is this?

Employers who invest in an establishment located in an aid area benefit from a tax reduction. They are temporarily exempted from paying 25% of the withholding tax to the Treasury. This exemption only applies to the withholding tax calculated on the wages paid following jobs that were created thanks to the investment.

The measure mainly applies to employers belonging to the private sector. They are divided into two groups: SMEs and large enterprises. SMEs enjoy more favourable conditions for the application of the exemption.

In order to claim the exemption, a form, more specifically form no. 274 SZ, must be submitted in a valid manner, at the latest in the third month following the completion of the investment. The exemption can only be calculated from the time of submission of the form at the earliest.

Subdivision of the aid areas

The aid areas in the Walloon Region are situated around Seraing, Sambreville, Charleroi and Frameries. In the Flemish Region, the aid areas are located around Genk, Turnhout and Zaventem-Vilvoorde.

These aid areas are divided into two groups:

• Group A: (parts of) aid areas which fall within the aid areas included in the regional aid map.
• Group B: (parts of) aid areas which do not fall within the aid areas included in the regional aid map.

The regional aid map is a map with aid areas which are disadvantaged in socio-economic terms and meet the conditions set by the European Commission. This aid map is composed by the regions and only takes effect after publication in the European Official Journal.

End of the Belgian regional aid map

The application period of the Belgian regional aid map expired on 31 December 2021. The parts of the aid areas that until 31 December 2021 coincided with the aid areas demarcated on the regional aid map and therefore belonged to the A group will belong to the B group as of 1 January 2022.

Consequences

Moreover, for large enterprises, the aid measure will only be applied provided that the investment is made in an establishment located in Group A of the aid area.

Since Belgium has not yet submitted a regional aid map for the period 2022-2027, there is temporarily no regional aid map for Belgium approved by the European Commission since 1 January 2022.

Consequently, large enterprises will not be able to file form 274 SZ as of 1 January 2022. Those who filed a form 274 SZ before 1 January 2022, are still eligible for the measure if they meet all the statutory requirements.

Any questions?

Would you like to know whether your enterprises meets the conditions for the exemption from advance payment of withholding tax? Contact our Legal Partners at legalpartners@partena.be for a concrete analysis of your situation.

Sources: Royal Decree of 9 February 2022 clarifying the impact of the end of the application period of the Belgian regional aid map on the aid areas located in the Flemish and Walloon Regions, Belgian Official Gazette, 15 February 2022; Notice FPS FIN - Investment in an aid area by large enterprises: end of validity of the regional aid map.