Since November 1, 2024, SMEs in West and East Flanders can benefit from a wage cost reduction of 4% to 5% on new jobs created through investments in an assisted area. Large enterprises can also benefit from this support measure in certain municipalities. The labor cost reduction consists of a two-year exemption of 25% from the withholding tax payment.
What are support zones?
Support zones, also called dislocated zones, are areas economically affected by reorganizations, restructurings or bankruptcies. The Flemish and federal governments have extended the scope of these zones to large parts of West Flanders and the western part of East Flanders. This broadening offers entrepreneurs new opportunities to invest and grow with financial benefits.
Who is eligible?
1. Location
Your business must be located in a business park, business center or incubator within the support zone. Easily check your location via Geopunt.be by adding the layer "support zone.
2. Investments
It applies only to investments in tangible or intangible assets. Examples include:
- New machines for capacity expansion.
- Start-up of new activities.
- Expansion of existing sites.
- Move to a location within the support zone.
3. New jobs
The labor cost reduction applies only to new positions resulting from the investment. In the case of acquisition or establishment of a new establishment, all positions are considered new.
4. Specific conditions for large enterprises
Large companies should:
- Investing in municipalities that are on the European regional aid map 2021-2027 stand.
- Investing in a new activity (by NACE code).
What does the payroll reduction entail?
The measure offers an exemption from 25% on the withholding tax on wages of new employees. This benefit can be applied for two years, provided the job is maintained for at least three years (for SMEs) or five years (for large companies).
How do you apply for the exemption?
- Application: Submit a request using the FPS Finance form, within 3 months of the completion of the investment and before the new job is filled.
- Declaration: Apply the exemption through your social secretary.
- Job retention: At the end of the minimum term, you must demonstrate that the position has been retained through a second form.
Be prepared
It is important to gather all relevant evidence from the beginning, such as:
- Lists of employees.
- Start and end dates of employment contracts.
- Detailed investment documentation.
Tax audits are possible, so be sure to keep good records.
Conclusion
This expansion of support zones offers entrepreneurs a unique opportunity to make investments more profitable. With the right preparations, you can not only save costs, but also contribute to the economic development of the region. Do you have questions about how to make the most of these benefits? Get in touch with our experts.
