A Low-Tax Zone for International Business

British Columbia offers companies a unique opportunity to increase profitability. By locating an International Business (IB) in British Columbia, a company can receive a full refund of British Columbia taxes paid on the net income of the IFB (75% for income earned on qualifying patents).

In this way, companies gain the advantage of outsourcing functions to a near-shore or on-shore location with an off-shore tax structure and without incurring the associated risks or unexpected costs.

What makes BC’s program unique?

• In most cases, non-arm’s length transactions as well as arm’s length transactions qualify.
• A company can locate the business anywhere in the province to be eligible for registration. Vancouver is only one of many thriving cities in British Columbia suitable for a business to consider as a location for investment.
• A company does not need to be a financial institution to apply.  Qualifying activities go beyond traditional banking functions and comprise many of the financial activities, such as Treasury, that are an essential part of the business. For a full list of qualifying activities, click here.

Employees can benefit from the IB program

Employees of registered companies can apply to be designated IB Specialists or Executive Specialists.

• These employees are eligible to receive a refund of provincial tax in the amount of 100% in Years 1 and 2; 75% in Year 3, 50% in Year 4; and 25% in Year 5.
• IB Specialists must have a minimum compensation of $100,000
• Executive Specialists must have a minimum compensation $250,000
• Employees working on patent-related activities do not qualify. For more about the Specialist program, click here.

The IB Program is administered by the BC Ministry of Finance. Click here to access the program's website and find further details.