05 INTERNATIONAL TECH HUB | BDO LLP
CANADA
which raises the possibility of tax credits and incentives. A lot of those credits have cash value even though you’re not taxable, so Canada is very lucrative for businesses from that perspective. Over recent years, the Canadian federal and provincial authorities have worked hard to create a positive business environment that is very open to overseas companies. A range of incentives and investments have been introduced to encourage companies into Canada, not just via tax incentives but also in immigration policy and encouraging large tech companies to come to Canada, around which a rich ecosystems of partners and suppliers has developed. All of this has really helped to ensure that we have the right bench strength in Canada to really increase our tech presence.
Peter Matutat, National Leader for Technology and Life Sciences at BDO Canada LLP, works with his team to best serve clients in the technology space, many of them from overseas. Harry Chana is National Tax Technology leader for BDO Canada, and International Tax Services Leader. His main practice area is with tech companies expanding either into Canada or expanding outside of Canada, and looking at tax efficient structuring on companies that are expanding globally.
WHAT ARE THE ADVANTAGES OF CANADA AS A PLACE FOR A TECH SCALE-UP TO CONSIDER EXPANDING INTO? We have a number of clients who move into Canada from other countries, and I’m always amazed by the ease with which they can get set up in Canada. It’s a very business-friendly environment, and with good advice, companies can be guided through the necessary process of ground-floor operational items – such as incorporation, tax registration, establishing the right legal structure, workers’ compensation board registrations and so on – in a remarkably painless way. And then they’re basically good to go! Another big incentive for firms looking to move into Canada is the R&D programme, which is invaluable for tech companies because there’s almost always IP involved. If you have people carrying out some type of design, development or coding activity, then there’s every likelihood that IP is being generated,
CANADA OFFERS A RICH POOL OF TECH TALENT
As with any business moving into any new country, Canada of course has its nuances in terms of tax regime, regulatory framework and so on. If you go into the process blindly, thinking you can just test the waters and attend a few trade shows and sign up some customers, you could easily come unstuck. But with some reliable professional advice, you could easily be set up and running within days. With the right advice from the outset, it’s really just a one-stop-shop, and you’ll be able to avoid all sorts of issues before they develop into anything more serious.
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