Invest in Belgium

1. Invest in Belgium 1

2. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 2

3. Belgium in the centre of the market 75 % of the EU Market (GDP) 40 % of the consumers 3

4. Belgium in the centre of the market • 11 million inhabitants • Official languages:French, Dutch, German • Independentsince 1830 • Federal state since 1981 • Head of state: King Philippe • Capital: Brussels 4

5. A perfectassessmentmarket • Gateway to European market • Multi-cultural population • European diversity challenge on a small scale • Belgium is 2nd in FDI Attraction Index Exportation 84% GDP Importation 83% GDP Source : The World Bank 5

6. Successful test in Belgium = successful test in Europe H&M maintains a pilot store in Belgium in order to market-test all its newest clothing collections. The Coca-Colacompany has tested over 1,000 products in Belgium, including the well-received Coca-Cola Light Sango cola and Fanta World Mango product in 2006. 6

7. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 7

8. Developed road and railway networks Belgium has the densest road network in the world Roads Density of network, km per square km Railroads Density of network, km per square km Paris – 1 hour 20 London – 1 hour 55 Amsterdam – 1 hour 55 Cologne – 1 hour 47 Frankfurt– 3 hour 19 connections / day 16 connections / day 10 connections / day 9 connections / day 4 connections / day 8

9. Belgianairports Europe and the world in a flap of wings • Brussels Airport • International crossroads connecting the capital of Europe with the world • Landing of most long-haul international flights with connections from major hub such as London, Amsterdam and Frankfurt , 2 daily flights to New-York and daily services to Toronto, Mumbai and Delhi • Cargo hub in the heart of Europe • Awarded “ Best Airport in Europe” (2012) by Airport Council International 9

10. Belgianairports Numberofpassengers/Million Europe and the world in a flap of wings • Brussels South Charleroi Airport (Cargo airport) • 200 ha Business park : “Aeropole” • 4Mio passengers in 2009 ; Aim 2010 : 5 Mio • Focussing on regular charter flights • Low cost flights & operations, high efficiency • NeighbouringAero-Industriestest base • Liege Airport (Cargo airport) • Centre of Amsterdam - Paris – Frankfurt triangle • 1st European Airport focussing on cargo • Operating 24/7 • European hub of TNT-Express Worldwide • Low cost, extra fast & efficient operations • International Airport Ostend-Bruges • Cargohub for Africa and Middle-East • Top facilities for perishables, outsourced cargo and livestock • EU veterinaryinspection post • Charter flights on selected destinations • Flexible 24/7 airportoperations • Fastturnarounds • Runway 3200 m/10500 ft Annual tonnage evolution 10

11. BelgianSeaports • Port of Antwerp • 2nd largest port in Europe • N°1 chemical port (BASF, Dow, Bayer, …) • Port of Ghent • Versatile port for distribution to Belgium andNorthern half of France • Largest recycling paper plant in the world • Port of Ostend • Fastgrowingro-ro port • Important role in the realisation of a Europeanshort sea container network • Port of Zeebruge • High end deep sea port in Flanders • European hub port for automative industry (new cars) 11

12. BelgianInland Ports • Port of Brussels • 6th largest inland port of Europe2nd inland port of Belgium • Port of Liège • 3rd largest in Europe • Close to seaports of Antwerpen en Rotterdam • Port of Namur • Junction between East & West Inland Ports • Port of Charleroi • Direct canals connections to Brussels and Antwerp • Port of Meerhout • Container Terminal nearbyAntwerp • Port of the Center & West Area - Mons • Door towards Paris Inland Port & Dunkirk Seaport • Port of Genk • TriModal Platform Water-Rail-Road 12

13. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 13

14. Brussels, International government capital • European Institutions • European Commission • European Council • European Parliament • Committee of the Regions • European Economic and Social Committee • Highest Concentration of Diplomatic Missions • NATO headquarters • 1500 International Professional Federations • Representation of most European Political Parties and Regions • Major multinationals have their decision center in Belgium: • Approximately2.300 foreign companies have set-up European HQ or sales subsidiary in Belgium • Brussels is the best conference city in Europe and the second best conference city worldwide (Source : UIA Conference Cities Ranking 2011) • 5 000 diplomats, 15 000 lobbyists and 1 500 international press members 14

15. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 15

16. Education & skills University Education Language Skills For information : India5,58 Russia3,9 Brazil3,7 China 4,4 For information : India7,35 China 4,37 Russia 4,06 Sources : University Education (IMD World Competitiveness Yearbook 2012) Language skills (IMD World Competitiveness Yearbook 2012) 16

17. Labor market Global Productivity Index Salary Cost (US $- for a Director) Countries withhighproductivityGDP/workedhour Total base salary plus bonuses and long-term incentives, US $ Sources : Conference Board 2012 Sources : IMD World Competitiveness Yearbook 2012 17

18. Research & Development Source: World Economic Forum 18

19. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 19

20. Cost-effective office market Office (prime rent location) Total OccupancyCost euro/m2/year Source : Cushman & Wakefield, Office Space Across the World 2013 20

21. Industrial areas Warehouse €/m2/year Source : Cushman & Wakefield, Office Space Across the World 2011 21

22. Springboard for a pan-European development • Global gateway to key markets/Ideal test market • Accessibility from all Europe & Worldwide • International decision center • International talent pool and innovation centre • Competitive real estate • Advantageous business environment • Corporate Tax Rate • Support to R&D • Incentives • High quality of life 22

23. Effective (Average) Corporate Tax Rate (ECTR) Especially in Belgium, the ECTR is considerably below statutory tax rates (-7,7%) Sources : ZEW, Centre for European Economic Research, Manheim Effect Tax Levels – Final Report 2012 23

24. Cost-effective tax regime Tax incentive for risk capital : Notional Interest Deduction Principle Companies are allowed to deduct a fictitious interest calculated on the basis of their shareholders equity Consequences Reduced effective tax rate 24

25. Cost-effective tax regime Fiscal Ruling Principle The investor describes the facts to the tax administration, allowing him to know, in advance, how the tax laws are to be applied on a case by case basis Consequences • Confidence to invest • Legally binding & accurate forecast Scope of applications Corporate tax, individuals tax, customs, VAT, etc. 25

26. Cost-effective tax regime Foreign executive status For the EMPLOYEE • Exclusion of days performed outside Belgium • Tax free allowances (relating to extra costs resulting from the Belgian employment) For the EMPLOYER • Reduction of employment cost for expat’s 26

27. Research & Development • 1. Patent income deduction • Deduction of 80% of the income from patents from the taxable basis, resulting in an effective tax rate of maximum 6,8% on this income • 2. Investment deduction • Investment deduction for R&D related investments • deduction of 14,5% on the investment value (in one shot) • OR 21,5% on the annual depreciation (spread deduction) • 3. Exemption from withholding tax on the remunerations of researchers • Principle: the salary withholding tax is normally retained on the remunerations paid to the researcher, but only 25% of the retained amount of tax must be paid to the tax administration (= extra financial means for the employer) → 75 % exemption of the withholding tax ! 27

28. Incentives Belgium 1. Investment Incentives Belgium 2. Research & Development Support • Subsidy for Basic Industrial Research : 50% (up to 70% for SME’s) • Advanced Loan for Applied Research : 50% (up to 70% for SME’s) • TaxIncentives for R&D • Calculated, as a percentage, on the purchase of : • Building • New equipment • Intangible investments (patents, licenses, technical expertise whether patented or not) • Calculation of the grant is based on various criteria : • Sector of activity • Size : Large company or SME • Employment creation • Geographical area (in or out the investments zones) • 3. Employment Incentives • Recruitment • Training 28

29. Ease in establishing a business • Belgium ranks first among the EU27 countries for the fewest number of days required for establishing a new business. • On-line start-up possible Source: IMD World Competitiveness Yearbook 2012 29

30. Springboard for a pan-European development Global gateway to key markets/Ideal test market Accessibility from all Europe & Worldwide International decision center International talent pool and innovation centre Competitive real estate Advantageous business environment High quality of life 30

31. An open country for expats • 140.000 European foreigners live in Brussels • Life cost is cheaper than in most of the other European capitals • Wide range of international schools, offering English, American and Japanese programs • High quality health care system 31

32. Brussels High quality of life at a reasonable cost In a quality of living survey of 50 cities, Brussels ranks 22th worldwide and 11th in the EU In a cost of living survey of 50 cities worldwide, Brussels is far more affordable than many major cities Source: Mercer Human Resource Consulting, 2011. Quality of living index NY = 100 Sources : Mercer Human Resource Consulting, 2012 32

33. Brussels High quality of life at a reasonable cost Average rent in urban location (appartment 120m2) Source: The Global Property Guide, Rental Yields, 2012 33

34. Our services We can bring support in the following areas: • Tax and legal information • Company registration • Build up local high level network • Prospection of an office or a site • Funding & public financial support • Guidance to public bodies • Recruitment & employment legislation • Sectoral expertise & market intelligence • Technological transnational partnerships 34

35. For further information Flanders Investment & Trade Gaucheretstraat 90 - 1030 Brussels www.investinflanders.com - invest@fitagency.be T : +32 2 504 87 11 - F : +32 2 504 88 99 Brussels Invest & Export c/o Ministry of Brussels-Capital Region Avenue Louise 500 - 1050 Brussels www.investinbrussels.com – info@investinbrussels.com T : +32 2 800 40 00 - F : + 32 2 800 40 01 Wallonia Export & Investment Agency Office For Foreign Investors Avenue des Dessus de Lives 6 - 5101 Namur-Loyers www.investinwallonia.be - welcome@investinwallonia.be T : +32 81 33 28 50 - F : +32 81 33 28 69 The Liaison Cel Federal Public Service Economy Contact person: Mrs Colette Vanstraelen Colette.vanstraelen@economie.fgov.be T : +32 2 277 72 82 35