A Corporate Tax Incentive Program
Locating an international business in British Columbia can increase your company’s profits even further.
By registering in BC’s International Business Activity (IBA) program, a company can receive up to a 100% refund on provincial corporate taxes paid on qualifying international business activities (75% on patent income to a maximum of $8 million). This can result in an effective corporate income tax rate of 15% – considerably less than other locations – for example, lower than Hong Kong (16.5% tax rate) and lower than Singapore (17.5% tax rate).
Qualifying International Business Activities
- Corporate finance and treasury
- International Finance
- Administrative services
- Fund Management
- Film distribution
- Digital media distribution (announced in 2010, not yet effective)
- Clean technology (announced in 2010, not yet effective)
- Carbon trading and certification (announced in 2010, not yet effective)
What makes British Columbia’s tax incentive program unique?
- In many cases, non-arm’s length as well as arm’s length transactions qualify.
- A company can locate anywhere in the province. Vancouver is only one of British Columbia’s many thriving cities. Learn more about BC here.
- A company does not need to be a financial institution to benefit. Qualifying activities go beyond traditional banking functions and include many financial activities and transactions, such as corporate finance and treasury functions, that are an essential part of every business.
What are the requirements for establishing an International Business?
- Incorporation in Canada
- Permanent establishment in British Columbia
- Not exempt from income tax under the Income Tax Act (Canada)
- Establish and carry on a qualifying business within 90 days of registration. View a definition of an IBA qualifying business on the BC Ministry of Finance website.
- Establish and maintain a membership in AdvantageBC. Read more about joining AdvantageBC.
The International Business Activity (IBA) 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 International Business Activity Act should consult with their professional advisors on the applicability of the legislation to their particular circumstances.