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Fund Administration and Management
Managing investments, providing financial advice, managing foreign exchange, preparing financial research
- By establishing an international business (IB) in British Columbia, a company can receive a full refund of the British Columbia taxes paid on the net income of the IB (75% refund for patent income).
- Companies can register a business or part of a business in the tax incentive program. For income to qualify for the refund, one side of the transaction must be with a non-resident.
- The International Business Activity Act (IBAA), legislated by the Province of British Columbia in 2004, provides the legislative framework for the IB program.
Qualifying Activities
Investment Fund Management
- Effective September 1, 2010, qualifying international financial activities under the IBAA will include management and administrative services of investment funds. (Specifications on the fund requirements and the activities will be published before September 2010.)
Managing an investment portfolio
- Managing foreign or Canadian investments for a non-resident
- Managing securities for a resident that are issued by a non-resident and not listed on a Canadian exchange
- Dealing in short-term securities with a nonresident person or broker
Financial advice and research
- Providing financial advice to a non-resident (this excludes legal, accounting or tax advice provided by a corporation in the business of providing that advice)
- Preparing financial research for a non-resident (this excludes legal, accounting or tax research provided by a corporation in the business of providing that research)
Managing foreign exchange activities for a non-resident
Administrative Services
- Administrative support services directly related to a financial activity of a non-resident financial business
British Columbia's Competitive Advantages
- British Columbia has a healthy supply of financial professionals that can support both the front end and back end processing this business requires.
| Professional Designations in British Columbia |
2009 |
| Certified General Accountants (CGA’s) and CGA students |
14,000 |
| Certified Management Accountants (CMA’s) and CMA students |
4,000 |
| Chartered Accountants (CA’s) and CA students |
11,500 |
| Chartered Financial Analysts |
1,054 |
(Statistics Canada, Employment, Earnings, and Hours, June 2009 and web sites of professional associations)
- In 2008, 50,000 people were employed in the banking sector, 15,300 in securities, and 30,400 were employed by the insurance sector.
- British Columbia offers an unrivaled natural environment supported by good schools and health care.
- British Columbia offers an alternative to the US business environment, with its more restrictive immigration requirements, reduced privacy protection, increased regulatory oversight since Sarbanes-Oxley legislation, tightened border, and other security measures that may restrict business.
Registering an IB
Further details on the IB program can be found in Bulletin IFA 001, International Financial Activity Overview.
The tax incentive program is administered by the BC Ministry of Finance. For more information regarding the legislation or provincial registration, please visit their website. The information on this website is provided for convenience and guidance only and is not a replacement for the legislation. Businesses considering accessing the benefits under the IBAA should consult with their professional advisors on the applicability of the legislation to their particular circumstance.
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