Canada’s Revised Intra-Company Transfer Guidelines (2024) - IRCC’s ICT Reforms Could Push Foreign Businesses to Rethink Canada as an Investment Hub

Nov 14, 2024

The Intra-Company Transfer (ICT) program is a Canadian immigration initiative that allows multinational companies to temporarily transfer key employees from their foreign offices to their Canadian branches, subsidiaries, or affiliates. This program is designed to facilitate the movement of skilled professionals across borders, helping businesses expand their operations in Canada while bringing valuable expertise and knowledge to the Canadian market.


On October 3, 2024, Immigration, Refugees and Citizenship Canada (IRCC) issued updated guidance regarding the intra-company transferee (ICT) work permit category. This revised guidance reflects a more restrictive interpretation of the ICT category.


Regulatory Framework for ICT Work Permits


The ICT work permit category is governed by Subsections 204(a) and 205(a) of the Immigration and Refugee Protection Regulations (IRPR):


  • R204(a): Applies to ICT work permits under Canada’s international free trade agreements (FTAs), which include specific provisions for ICTs. Updated guidance for processing ICT work permit applications under Canada’s FTAs can be found here.


  • R205(a): Covers the general ICT category, available to all foreign nationals regardless of their citizenship. Updated guidance for processing work permits under this category is available here.


While most of the updated guidance focuses on the general ICT category under R205(a), certain changes also apply to ICT work permits issued under R204(a).


Summary of Key Changes


Revisions on the General ICT Category [R205(a)]


The revised guidance emphasizes that the ICT category is not intended for the general transfer of an enterprise’s workforce to affiliated entities in Canada. Only executives, managers, and specialized knowledge workers are eligible for ICT work permits.


Additionally, the guidance highlights that the ICT category is designed to support the establishment of qualifying enterprises and facilitate the movement of highly specialized workers, managers, and executives to meet specific temporary business needs. Applications must include documentation demonstrating the temporary nature of the stay, ensuring applicants satisfy officers that they intend to leave Canada upon completing their assignment. This places a positive obligation on ICT applicants to demonstrate bona fide non-immigrant intent.


Some officers might interpret this guidance to deny ICT work permits solely because the applicant is also pursuing permanent residency. However, such a denial would conflict with Subsection 22(2) of the Immigration and Refugee Protection Act, which explicitly recognizes dual intent.


New Definition of "Multinational Corporation" [R205(a)]


The revised guidance limits the general ICT category to employees of multinational corporations (MNCs). An MNC is defined as a company conducting revenue-generating operations in at least one country other than its home country. While this definition seems reasonable, the related guidance imposes significant limitations on foreign companies.


For ICT work permit applications, officers must verify that the foreign enterprise is an existing MNC with revenue-generating operations in at least two countries before establishing a Canadian entity. A foreign enterprise cannot use the ICT category to establish its first foreign operation in Canada. For instance, a foreign company operating solely in its home country would not qualify to transfer employees to establish a new Canadian enterprise.


This restriction prevents foreign companies without pre-existing operations in at least two countries from utilizing the ICT category to establish a Canadian presence, severely limiting many foreign companies’ ability to set up operations in Canada.


Requirement to Demonstrate Significant Benefit to Canada [R205(a)]


The updated guidance requires ICT applications to include evidence showing how the foreign national’s work will provide significant economic, social, or cultural benefits to Canada. While all work permits under R205(a) are theoretically based on significant benefit, ICT applicants previously were not required to document this. Eligibility under the ICT category presumed a significant benefit (although in practice, we have always been touching on this in our clients' application due to the general framework of the work permits issued under R205).


The revised guidance eliminates this presumption, creating a positive obligation for ICT applicants to demonstrate how their presence in Canada will directly benefit Canadians.


Revisions to Specialized Knowledge Criteria [R205(a)]


The revised guidance includes several updates to how officers assess "specialized knowledge":


  • Occupation Alignment: The ICT position in Canada must align with the applicant’s current role abroad, classified under the National Occupational Classification (NOC). The updated guidance removes language suggesting that exceptions for "exceptional situations" might apply.


  • Experience Requirement: Applicants with less than two years of experience at the foreign enterprise will face challenges qualifying as specialized knowledge workers. The previous guidance allowed exceptions for those with less than one year of experience in rare cases.


  • Compensation: Officers will now assess whether the foreign national’s compensation abroad reflects their specialized knowledge. Additionally, the mandatory wage floor for specialized knowledge ICT work permits remains in place.


Requirement to Retain Employment Abroad [R205(a)]


Foreign nationals must demonstrate that their position with the foreign enterprise will remain available throughout their assignment in Canada. This requirement may place a significant burden on foreign enterprises, particularly for executives and managers, who may remain in Canada for up to seven years, or specialized knowledge workers, who are limited to five years.


Restrictions on Changing ICT Categories [R204(a) and R205(a)]


The revised guidance clarifies that foreign nationals may apply for a new ICT work permit in a different category (e.g., from specialized knowledge to managerial), provided they meet the following criteria:


  1. Their current position in the foreign enterprise aligns with the new position in Canada.


  2. They have completed at least one year of full-time work in a similar role with the foreign enterprise within the three years immediately preceding their new application.


The reference to the three-year period appears problematic, as it does not account for ICTs already working in Canada and seeking extensions based on previous experience. This oversight could render some ICTs ineligible for extensions or changes to their roles.


Location of Employment [R205(a)]


The revised guidance emphasizes the need for a clear explanation of why the foreign national must work in Canada rather than remotely. Additionally:


  • Applicants transferring to establish a new Canadian entity must show that their presence is necessary to manage operations independently of the foreign enterprise.


  • Specialized knowledge workers must remain under the direct supervision of the Canadian enterprise, not a third-party business.


ICTs must work at physical commercial premises in Canada. Businesses operating from virtual locations, residential addresses, or shared spaces are ineligible for ICT work permits. However, exceptions still do exist for start-ups operating temporarily from legal representatives’ offices until the ICT arrives to establish operations.


Prevailing Wage Requirements [R205(a) and R204(a)]


General R205(a) ICT Applications


For specialized knowledge workers under R205(a), a mandatory wage floor has been in place since June 9, 2014. The revised guidance maintains this requirement and suggests a similar approach for executive and managerial workers.


Officer’s Review of Offer of Employment


Officers are instructed to:


1. Confirm wage reasonableness for the occupation

2. Ensure wages are not lower than the prevailing wage for the occupation and location (please use the Job Bank Compare Wages page for reference)

3. Exclude additional allowances (e.g., housing, travel) when assessing wages


Important Notes:


• Payment currency is not restricted, but wages must align with Canadian prevailing wage

• Lower wages may indicate a lower NOC level than expected for ICT


While this guidance appears to apply to all R205(a) ICT applications, it contradicts other sections that only mention the mandatory wage floor for specialized knowledge cases. This inconsistency requires clarification from Immigration, Refugees and Citizenship Canada (IRCC).


R204(a) ICT Applications


The revised guidance for R204(a) ICT applications presents some contradictions:


1. It does not explicitly mention a mandatory wage floor, even for specialized knowledge workers

2. The Offer of Employment review section indicates that a mandatory wage assessment is not required

3. However, it includes language similar to the mandatory wage floor description


The guidance does clarify that wages are considered an important indicator of specialized knowledge, but not of executive or managerial capacity.


The revised guidance contains internal inconsistencies regarding the application of prevailing wage requirements for different categories of ICT work permits. Further clarification from IRCC is needed to resolve these discrepancies and provide clear instructions for officers reviewing ICT work permit applications.


Length of Stay [R204(a) and R205(a)]


The revised guidance specifies that ICTs are initially admitted for up to three years, with two-year extensions available. Executives and managers may stay in Canada for a maximum of seven years, while specialized knowledge workers are limited to five years. These limits are consistent with previous policies but are now explicitly outlined.


Visa-exempt nationals applying at Canadian ports of entry often received renewals of up to three years under the previous guidance. It remains unclear whether Canada Border Services Agency (CBSA) officers will continue this practice.


Blacksy’s Reflections


These changes and restrictions to the ICT work permit category are deeply concerning for foreign investors. At a time when Canada is grappling with various economic challenges, such measures will likely deter many foreign enterprises from expanding and investing in Canada, particularly those applying under the general ICT category. Applications tied to international free trade agreements (FTAs) are less likely to be impacted at this level, but the broader restrictions may create significant barriers for many businesses.


Despite these limitations, it is important to note that the ICT program has not been eliminated. It continues to provide pathways for eligible executives, managers, and specialized knowledge workers to contribute to Canada’s economy under specific conditions.


At Blacksy, we understand how these changes may impact your business goals and operations. If your company is considering an ICT work permit application or exploring alternative immigration pathways, we are here to help. Contact us for legal guidance and tailored solutions to navigate these evolving policies and keep your business moving forward.


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About the Author


I’m Ahmet Faruk Ocak, a Canadian immigration lawyer and the founder of Blacksy Immigration Law Firm 🌊. 


At Blacksy, we specialize in providing honest, straightforward, and tailored immigration solutions to individuals and businesses worldwide. Our brand promise is simple: no unnecessary fuss, no false hopes, and no empty promises—just realistic, reliable guidance to help you achieve your immigration goals.


Whether you’re expanding your business to Canada, transferring top talent, or planning your future here, we’re here to guide you with precision, transparency, and care.


Visit us at www.blacksyimmigration.com to learn more or to start your journey.