Defining an IB

An international business (IB) is defined in the International Business Activity Act (IBAA) and its accompanying regulations

An International Business

An “international business” (IB) is defined in Section 1 of the IBAA as a business

(a) that is a qualifying business carried on by the corporation through a fixed place of business in B.C.; and

(b) all the activities of which are international financial activities;

A “qualifying business” is further defined in the Regulation subsection 1.1(1) as:

(a) an active business carried on by the corporation,

(b) a business carried on by the corporation

(i) that is separate from another business that is an active business carried on by the corporation,

(ii) for which the income or loss of the business is principally income or loss from a source that is property, and

(iii) for which income or loss does not include the income or loss from any source that is property that is

(A) incident to the active business carried on by the corporation, or

(B) used or held principally for the purpose of gaining or producing income from the active business carried on by the corporation, or

(c) a business carried on by the corporation if that corporation

(i) is affiliated with or not dealing at arm’s length with another corporation that carries on an active business,

(ii) at the particular time for the purposes of this Act, has capital employed in British Columbia in an amount equal to or greater than $10,000,000 and

(iii) for the particular taxation year, paid salary and wages to employees of the corporation employed in the active conduct of the business in British Columbia in an amount equal to or greater than

(A) $300,000, or

(B) if the taxation year is less than 365 days, the amount that is that a proportion of $300,000 that the number of days in the taxation year bears to 365.

Further details on the IB 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 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 circumstances.

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