International financial transactions

Certain international financial transactions, or front office activities, carried out by a corporation may be eligible for a non-refundable tax credit if they are carried out under certain conditions.

What you should know

To access the tax benefits administered by the Ministère des Finances, the corporation must, first and foremost, hold the qualification certificates and annual certificates required under the Act respecting the sectoral parameters of certain fiscal measures (CQLR, chapter P-5.1) and, to that end, hold the status of international financial centre (IFC).

Eligibility requirements

To be eligible for the measure, international financial transactions must involve a foreign financial product, a foreign client, or both, depending on the specifics of each of the activities set out in section 7 of the Act respecting international financial centres (CQLR, chapter C-8.3) .

Qualifying international financial transactions

There are 24 types of qualifying international financial transactions, divided into 8 sectors of activity.

Asset management

administration of the shares of an investment fund
distribution of the shares of an investment fund
management of an investment fund
organization of an investment fund
securities advising or portfolio management

Brokerage and cash management

cash management

Commercial banks and lending institutions

deposits of money
factoring services
foreign exchange transactions
leasing services
loans of money
loans or deposits of money between IFCs

Fiduciary and clearing house services

clearing house services
fiduciary services

Immigrant Investor Program

activities performed under the Québec Immigrant Investor Program

Insurance

damage insurance brokerage
reinsurance

International trade financing

bill of exchange
discount operations
documentary collections

Investment banking

financial engineering services
financial packaging services

Other activities that may be eligible for tax credits

In addition to international financial transactions, a corporation may also carry out other types of activities that may be eligible for tax benefits.