Supporting growth and development in Québec’s financial industry
The IFC tax credit program encourages the establishment and development of new projects at companies specializing in international financial activities in the greater Montréal area.
A corporation that operates an international financial center (IFC) may be entitled to a tax credit for the salaries of its eligible employees. The tax benefit for a corporation holding IFC status can reach $18,000 per year per employee. The type of tax benefit and the amounts granted vary according to the category of activities carried on by the company.
An eligible foreign specialist employed by an IFC may qualify for a deduction on their taxable income for a period of five consecutive years.
Program
eligibility
- Financial transactions on behalf of a foreign client or that include a foreign component, such as a foreign exposure product or a foreign counterparty.
Examples: securities trading, securities advice or portfolio management, letter of credit, trust services.
- Administrative support services required by international financial transactions conducted by another entity (which may or may not be affiliated).
Examples: transaction recording, securities settlement, clearing, fund accounting.
- Administrative support services required by international financial transactions conducted by another entity (which may or may not be affiliated).
Examples: compliance services, data quality control, corporate finance and taxation, and information technology (IT).
A local employee is considered an eligible employee for a period of time if their duties are directly attributable to the performance of eligible international financial activities. The employee must work full-time, have an employment contract for a minimum of 40 consecutive weeks and devote at least 75% of their duties to the performance of only one of the three categories of eligible activities mentioned above.
Want to learn more about the IFC tax credit program?
Complete the form below and a member of our team will get back to you as soon as possible.
