Canada: British Columbia eliminates tax incentive | KPMG | GLOBAL

Canada: British Columbia eliminates tax incentive for international business activities

Canada: British Columbia eliminates tax incentive

A program in British Columbia to allow refunds of provincial corporate income tax—the International Business Activity (IBA) program—was eliminated, effective 12 September 2017.

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The IBA program allowed eligible participants refunds of the British Columbia provincial corporate income tax assessed on their international business activities. A corporation cannot apply for the IBA program after 11 September 2017.

With the withdrawal of the IBA program, there are transitional measures for affected corporations and employees of corporations, including:

  • Corporations and specialists registered as of 11 September 2017 will continue to be registered until the end of the tax year that includes 11 September 2017.
  • Corporations with registered specialists as of 11 September 2017 must still file a report for those specialists for the applicable tax year—due the earlier of 31 March 2018 or 30 days after the discontinuance of the international business.
  • Registered corporations and specialists may file a final return for a refund (the calculation of which is modified so that income earned after 11 September 2017 will not be eligible for a refund) for the tax year that includes 11 September 2017, which is due within 18 months after the end of the tax year.

 

Read an October 2017 report prepared by the KPMG member firm in Canada

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