Under the International Financial Activity Act (IFAA), 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:

• 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.
• Savings institutions can qualify 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 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.
• Any other fee-based prescribed financial activity conducted exclusively for non-residents.
• Dealing in foreign exchange.
• Collecting trade accounts receivable.

Benefits and Additional Information

• By registering both financial activities and administrative support, you can qualify both the front-end and the back-end of the business.
• Activities may be transacted on an arm’s length, non-arm’s length, or affiliated basis.
• Individuals employed by a registered company (IFA Specialists) may also qualify for up to a 75% Provincial Personal Income Tax refund for the first five years of employment.
• Income earned by the office on the registered business can qualify for a full refund of corporate taxes paid to the Province of British Columbia.

Other reasons to locate in BC

Your company can also save money on salaries.  The table below shows the average salary of a Financial Analyst in selected cities.

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.

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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