Although the role of corporate treasury varies by company, certain functions required by international companies to maintain corporate liquidity and manage assets may be covered within the framework of the International Financial Activity Act (IFAA).

Qualifying Activities under the IFAA

• 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-residents.
• 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.

Benefits and Additional Information

• 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.
• By registering both treasury 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 a refund of up to 75% provincial income taxes for the first five years of employment. IFA Specialists qualify for these activities.

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.

• The expense of staffing a Treasury office in British Columbia is less than what it would be in other major cities.
• Companies in British Columbia can take advantage of a favourable time zone with access to Europe in the morning and Asia in the afternoon. 

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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