After the adoption of the decree put forward by the Vice-President of the Walloon Government, Pierre-Yves Jeholet, unanimously approved in plenary session by the Walloon Parliament on 29 January 2025, the Chamber of Representatives has now in turn passed the “floods” bill, allowing the federal government to release additional tax relief.
In addition to the intervention of the Walloon Disaster Relief Service, this aid aims to support employers affected by the July 2021 floods by granting them an exemption from paying 30% of payroll withholding tax over a period of 40 months.
Given the economic consequences of this natural disaster, a Cooperation Agreement between the Federal State and the Walloon Region enables affected businesses to receive concrete financial support aimed at preserving jobs and encouraging recovery.
Reacting to the Chamber's adoption of this law, Pierre-Yves Jeholet, Vice-President of the Walloon Government, stressed the importance of this measure for affected businesses:
“Following the adoption of the decree by the Walloon Parliament, I am delighted that the Chamber of Representatives has in turn passed this essential bill, enabling significant tax relief in addition to the intervention of the Walloon Disaster Relief Service. This initiative reflects a shared commitment by federal and regional authorities to guarantee effective and lasting support to businesses affected by the floods. Together, we have worked to put in place concrete aid, so that they can overcome economic difficulties and continue their activities under the best possible conditions.”
Targeted support for affected businesses
This aid targets employers with one or more operating units that suffered material damage or uncompensated loss of income as a result of the floods. The 30% reduction in payroll withholding tax applies to employees working at affected sites and is valid for a maximum period of 40 months.
Eligibility criteria
To benefit from this measure, businesses must meet the following conditions:
- Location: The operating units must be located in an area officially recognised as a disaster zone by the authorities.
- Material damage: The business must provide evidence of damage to its facilities, confirmed either by a favourable decision from the Regional Disaster Relief Service (SRC) or by a certificate from an insurance company specifying the amount of compensation received.
- Loss of income: The business must demonstrate a decrease in income within the six months following the floods.
A defined cap on the aid
The total amount of the exemption granted to an employer may not exceed 25% of the difference between:
- The cost of damage directly caused by the natural disaster (material damage and operating losses over a maximum of six months).
- Aid and compensation already received from the Region, another public authority or an insurer.
Steps and deadlines to follow
For more information on the details of this aid and the steps to take, affected businesses are invited to consult the platform launched by Wallonie Entreprendre from its opening on 4 April: https://www.1890.be/mesures-inondations/. Please note that this platform is also available in German by clicking the button provided for this purpose at the top left of the page.
Deadline for submitting applications
16 May 2025