Patent Activity

Life science and green-related patents qualify. Green-related are those related to power generation using forces of nature such as wind, solar and tidal. Wastewater treatment and fuel cell technology were added in 2009.

• By establishing an international financial business (IFB) in British Columbia, a company can receive a refund of 75% of the British Columbia taxes paid on the net income of the IFB to a maximum of $8 million. 
• Companies can register a business or part of a business in the International Financial Activity (IFA) program. For income to qualify for the refund, one side of the transaction must be with a non-resident.
• The International Financial Activity Act (IFAA), legislated by the Province of British Columbia in 2004, provides the legislative framework for the IFA program.

Qualifying Activities

• The two general areas qualified are life science patents and green-related.
• Green related patents are those related to power generation using forces of nature such as wind, solar and tidal. In 2009, fuel cell technology and wastewater were added to the list of eligible patents.
• A complete list of eligible patents, defined by IPC code, can be found on the website of the BC Ministry of Finance (formerly the BC Ministry of Small Business and Revenue). 
• Activities related to these patents are:
• Selling, assigning, or licensing a prescribed patent to a non-resident.
• Selling a good or service to a non-resident where the revenue is based on an invention for which a prescribed patent is owned by the corporation.
• A registered corporation may choose to claim a tax refund on either a life science patent activity or another qualifying international financial activity, but not both.

Benefits

• British Columbia ranked third in Canada for attracting capital in 2008. (E&Y; Beyond Borders 2009).
• The new ICORD spinal research centre, completed in 2008, houses the largest spinal cord research facility in the world.
• There are an estimated 179 life sciences companies in British Columbia employing 2,700 people.
• The University of British Columbia has generated 120 spin-off companies of which 71 are still active and provide employment for approximately 2,000 people.

Registering an IFB

Further details on patent activity as it relates to the IFA program can be found in Bulletin IFA 002, International Financial Activity.

The IFA program is administered by the BC Ministry of Finance (formerly the BC Ministry of Small Business and Revenue). 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 IFAA should consult with their professional advisors on the applicability of the IFAA legislation to their particular circumstance.

Return to top of page