The globalization mechanism 2021

As for the year 2020, the Flemish Government provides for a globalization mechanism for 2021 for businesses that have experienced a major decline in turnover. Businesses that had a certain decline in turnover in 2021 can receive financial aid of up to 10% of the turnover. The application can be submitted until 13 June 2022.

For whom?

The business is a company, association or foundation incorporated under private law and the foreign enterprise with a similar status, which has filed the financial accounts for 2019 and 2020 and which will file the financial accounts in 2021 on time. The association and the foundation must carry out an economic activity.

The globalization mechanism 2021 provides support to businesses that:

1. Had a decline in turnover of at least 40% in the period from 1 January 2021 up to and including 31 December 2021.
2. Have suffered a decline in turnover of at least 60% in at least two separate quarters of calendar year 2021 and an accounting loss in calendar year 2021 pursuant to the corona measures.
3. Had a minimum turnover of €600,000 in calendar year 2019.
4. Have an active operating seat in the Flemish Region (CBE) by 1 July 2021.

The following businesses are excluded:

• businesses that are inactive as a result of bankruptcy, liquidation, cessation of activity or dissolution.
• holding companies, patrimonial companies and management companies.
• businesses whose managing director is linked as a director or partner to another business that has received the subsidy and to which they provide business services.
• businesses which were in difficulty according to the European definition on 31 December 2019.
• credit institutions and financial institutions subject to supervision by the National Bank of Belgium.
• businesses that are required to use a registered cash register system (white cash register) and do not have a registered cash register system.

A special arrangement is worked out for (businesses with) business lines.

Maximum amount of aid

The aid amounts to 10% of the turnover excluding VAT for the period from 1 January up to and including 31 December 2019.

The turnover in the reference period to which the aid percentage is applied will be limited to 75% if the decline in turnover in calendar year 2021 is less than 70% and there are no three quarters in calendar year 2021 with a decline in turnover of at least 60%.

This aid is limited under certain circumstances. For more information, please refer to the Vlaio website.

The maximum amount of aid is determined in two ways:

1° based on the expanded employment in 2019 and the decline in turnover in 2021:

Expanded employment consists of:

• the NSSO employment 
• the average of the number of FTEs in 2019:
  • actively working partners 
  • temporary agency workers
  • working students, for whom no social security contributions are due
  • employees of service providers. 

2° based on the minimum NSSO employment, the minimum turnover in 2019 and the decline in turnover in 2021:

The NSSO employment is the average of the quarterly averages in 2019 of the number of full-time equivalent employees registered with the NSSO.

Please note: In addition, the aid under the Flemish Protection Mechanism 4 to 11 and the repayable advance event sector call 2021 are always deducted from the subsidy.

Application

You can submit a subsidy application through 13 June 2022, 8 p.m.

The online application can be made from 16 May 2022 through 13 June 2022 via the online tool at www.vlaio.be/nl/subsidies-financiering/globalisatiemechanisme-2021/aanvraagprocedure.

A guide is available in the Application Process section of the website. The submission will require the completion of various data and the uploading of supporting documents.

The decision will be communicated to the business by email. The decision to pay the aid cannot be made until the financial accounts for the tax year 2021 have been filed and are available for audit by VLAIO.

Source:

• Decree of the Flemish Government of 13 May 2022 concerning the corona globalization mechanism for businesses with a major decline in turnover as a result of the coronavirus measures.
• https://www.vlaio.be/nl/subsidies-financiering/subsidiedatabank/globalisatiemechanisme-2021