The International Financial Activity Act (IFAA) is intended to aid in the development of an international, financially-based business community in British Columbia. By registering in the International Financial Activity (IFA) program, a company, incorporated in Canada with a permanent establishment in British Columbia, can register for up to a 100% refund of its provincial corporate taxes on income from eligible activities.

Qualifying Activities Under the IFAA

Activities that may qualify if carried out for, with, or on behalf of a non-resident:

Head Office

• Strategic management services provided by the head office of a corporation.
• Selected human resource services.

• Trading in money market investments with a non-resident (new in 2008). These are generally short‐term investments and include treasury bills issued by a government, commercial paper and bankers’ acceptances.
• Accepting or making deposits in any currency.
• Making loans or borrowing in any currency.
• Guaranteeing the payment of a debt, if the debtors or creditors are non-resident.
• Dealing in securities as principal with non-residents; dealing in securities as agent for a non-resident in transacting securities with either a resident or a non-resident.
• Providing financial advice.
• Fee-based management of foreign exchange activities for a non-resident.
• Fee-based management of investments for a non-resident.
• Fee-based management of investments, for residents, in securities issued by a non-resident and not listed on a Canadian exchange.
• Preparing stock market or financial research for the exclusive use of non-residents.
• Managing foreign exchange activities for a non-resident.

• Factoring qualifies where the accounts are receivable from a non-resident and purchased without recourse. 
• Collecting trade accounts receivable.

Administrative Services

• Administrative support services directly related to a financial activity of a non-resident financial business qualify. 
• Back-up office services, such as providing equipment and premises to a non-resident to continue business operations in the event primary equipment becomes temporarily unusable.

Patents

• Selling, assigning, or licensing eligible patents to a non-resident.
• Selling a good or service where the revenue is based on an invention for which an allowed patent is owned by the corporation.

Financial Activities

• Accepting or making deposits in any currency.
• Making loans or borrowing in any currency.
• Guaranteeing the payment of a debt, if the debtors or creditors are non-resident.
• Letters of credit and documentary collections.
• Dealing in securities as principal with a non-resident; dealing in securities as agent for a resident in Canada in transactions where the security or exchange is outside Canada.
• Providing financial advice.
• Fee-based management of foreign exchange activities.
• Fee-based management of investments.
• Fee-based management of investments, for residents, in securities issued by a non-resident and not listed on a Canadian exchange.
• Preparing stock market or financial research for the exclusive use of non-residents.
• Dealing in foreign exchange other than on the corporation’s own account.

Film Distribution

• Distributing film and television rights outside Canada, including ancillary rights.

Other Activities

• Leasing property by means of a direct financing lease. 
• Insuring or reinsuring risks related to non-residents and property outside Canada.

• A registered corporation can apply to register an IFA Specialist. An IFA Specialist may qualify for up to a 75% Provincial personal income tax refund for the first five years of employment.

Registering a Business

To be eligible to register under the IFA program, a company’s international financial business must be part of an active business and carried on through an office in British Columbia. Further details on the IFA program can be found in Bulletin IFA 001, International Financial Activity Overview. Details on Life Sciences can be found in Bulletin IFA 002, Life Science Patents.

The IFA program is administered by the BC Ministry of Small Business and Revenue, Revenue Programs Division, Income Taxation Branch. For more information regarding the legislation or provincial registration, please visit their website.

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