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

Certain management services directly related to the business operation of a non-resident are eligible activites:

• Strategic managment services provided by the head office of a corporation;
• Certain human resource services, such as payroll, benefit management, recruitment and selection, and training and development.

Benefits and Additional Information

• Activities may be transacted on an arm’s length, non-arm’s length, or affiliated basis.
• IFA Specialists do not qualify for this activity.

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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