Using the BC IFC to Create Cash-Tax Savings for Your Business

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Your challenges

Whether you are a Canadian- or foreign-owned company, you should consider the most effective means to reduce your corporate income's tax rate — without moving your business functions or transactions outside of the country.

BC's International Financial Activity Act (IFAA) provides an international financial business (IFB) with the opportunity to qualify for a full refund of BC corporate income tax. Some of the qualifying activities include:

  • Hedging and foreign exchange management activities
  • Head office functions
  • Treasury functions
  • Inter-company (group) financing and factoring
  • Operational support

Using a BC IFC can help uncover cash-tax savings through the elimination of BC provincial taxes, as well as lower implementation and maintenance costs.

How PricewaterhouseCoopers can help

We can assist you with a feasibility analysis, help prepare and submit rulings confirming eligibility of proposed activities, and contribute to the implementation process.

For further information or if you would like to have a PwC tax professional contact you, please send an email to PwC Tax Opportunities.

This communication is intended to inform readers of developments as of the date of publication, and is neither a definitive analysis of the law nor a substitute for professional advice. Readers should discuss with professional advisers how the information may apply to their specific situations.

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