The Flemish regional aid map lists all the municipalities in which large companies can receive investment aid. These municipalities are located in regions where economic development is significantly lower than in other regions of the country and the wider European Union. For SMEs, there is no geographical limitation on receiving investment aid.
What does it mean?
The European Commission has recently approved the proposal for the new aid map for the period from 2022 to 2027. For Flanders, this map contains 19 municipalities in Limburg and 3 in East and West Flanders, respectively. Below you will find a table with all the eligible municipalities:
There are several criteria that determine whether a municipality is placed on the aid map. They must meet EU conditions and the connecting areas must have at least 100,000 inhabitants. Furthermore, the number of jobseekers compared to the Flemish average, the gross added value compared to the Flemish average and the availability of business sites are also taken into account.
Potential benefit for large companies
Naturally, large companies in these regions still have to meet the specific criteria of the aid programmes (such as the Strategic Transformation Support and the withholding tax exemption in disrupted areas) in order to receive investment aid. The Strategic Transformation Support programme grants 8% basic aid for investments. The withholding tax exemption scheme allows an exemption of 25% of the withholding tax payment for a period of 2 years.
Are you a large company planning to invest in a municipality that is eligible under the regional aid map? Do not hesitate to contact the PwC Incentives Hub for more information. Our team of experts can help you with the application process every step of the way.