Job creators in Zaventem and Vilvoorde to get tax breaks

Companies that create jobs in Zaventem and Vilvoorde will be able to claim a tax adjustment, economy minister Philippe Muyters has announced. The area has been declared a special support zone by the government of Flanders.

The special status was agreed to by the regions and federal government in 2014 to allow each region to nominate four zones where the tax incentive would apply. Flanders immediately designated the area around Turnhout in Antwerp province, which had suffered the loss of some 500 jobs at Philips and Heinz, and around Genk in Limburg, hit hard by the closure of the Ford car factory in 2014.

The status gives a tax exemption for two years to companies that create jobs in the areas concerned, equivalent to a 5% cut in the cost of creating jobs. “Despite the efforts of the federal government, salary costs in Belgium remain very high,” Muyters said. “That slows new investments, certainly in areas that have suffered heavy job losses in recent years.”

Several companies in the airport area have suffered job losses lately, he said, pointing to LSG Sky Chefs (pictured), HP Belgium, Jet Airways India and Makro. “We want to give the zone a boost by offering reductions for each job created by new investments.”

The announcement was greeted as “a positive signal” by Nancy Van Espen, director of the Flemish Brabant chapter of Unizo, the organisation that represents the self-employed.

“This decision is a welcome boost for businesses in a region that has been through hard times,” said Peter Van Biesbroeck, director-general for Flemish Brabant at Voka. “Major projects are no longer developed here, so it’s necessary to give an extra stimulus to small and medium-sized businesses to improve employment in the area.”

Photo courtesy LSG Sky Chefs