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International Finance Centers (IFCs)
In Montréal, a company or a part of a company may be recognized as an IFC if it meets the following conditions:
- All of the company’s operations consist of prescribed international transactions (stockbrokers, letters of credit, foreign exchange operations, loan arrangements, insurance operations, administrative support)
- The management of the operations that make it possible to perform such transactions must be carried out in Montréal
- Such operations are accounted for separately
- The company must obtain a certificate issued by the Minister of Finance of Québec.
Tax Incentives
Two types of tax incentives may be granted to IFCs in Montréal, i.e. those applicable to a company operating an IFC and those granted to the employees of an IFC.
A company operating an IFC is entitled to a limited 75% tax holiday on Québec income tax on profits generated by prescribed international transactions, capital tax and contributions to the Québec Health Services Fund.
Foreign specialists in international financial transactions not residing in Canada prior to being employed exclusively by an IFC who sign an employment contract with a company operating an IFC may benefit from a five-year limited exemption from Québec income tax on 75% of their earnings.
Specialized employees and strategic personnel of IFCs residing in Québec may benefit from an exemption from Québec income tax on up to 37.5% of their remuneration that is paid to them for services rendered in relation to international financial transactions.
For a list of IFCs in the metro Montreal area, please consult the IFC Montréal Web site.
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