Extension of the aid areas in the Flemish Region

The application period for the Flemish aid areas is extended by 2 years. Companies in aid areas around Genk and Turnhout can apply for tax aid until 31 October 2024, while companies in the aid area around Zaventem-Vilvoorde have this option until 31 May 2028.

What does the tax aid entail?

Employers who invest in an establishment located in an aid area receive a reduction of tax burdens. They are temporarily exempted from paying 25% of the withholding tax to the Treasury. This exemption applies to withholding tax calculated on remuneration paid for new jobs created by the investment.

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

How to claim the exemption?

You must submit form no. 274SZ correctly, no later than the third month after completing the investment and within the application period of the aid area. The exemption can be calculated from the time of submission of the form at the earliest.

Form no. 274SZ can be submitted at the latest:

• For the aid areas around Genk and Turnhout: 31 October 2024;
• For the aid area around Zaventem-Vilvoorde: 31 May 2028.

After the end of the application period of the aid area, you can still benefit from the exemption, provided you submitted the form on time (= within the application period of the aid area).

Delineation of the Flemish aid areas

In addition to the 2-year extension of the application period, the existing Flemish aid areas have been updated. This results in a limited expansion of the aid areas. Furthermore, business parks, incubators, business centres and brownfield covenants belonging to several Flemish aid areas are assigned to the aid area around Zaventem-Vilvoorde.

To determine if a specific address or parcel number is located in an aid area or to get an accurate picture of aid areas, you can consult the web application Geopunt (Select ‘Lagen’ > ‘Lagen toevoegen’ > ‘Landbouw, visserij en economie’ > ‘Bedrijven’ > ‘Steunzones – Gebieden waar inhouding van bedrijfsvoorheffing mogelijk is’). 

Aid areas in the Walloon Region

The application period for the aid areas around Seraing, Sambreville, Charleroi and Frameries ends on 30 April 2025. Thus, forms no. 274SZ can still be submitted for these aid areas.

Do you have any questions?

For further questions regarding the reduction of tax burdens and the extension of aid areas, our Legal Consultants are ready to assist. You can contact them via legal@partena.be.

Source: Royal Decree of 26 October 2023 for an extension of the application period of the aid areas around Genk, Turnhout and Zaventem-Vilvoorde, Belgian Official Gazette, 8 November 2023.