Unlocking the IP Box in Fintech

At the heart of Fintech lies sophisticated middleware. This powerful software drives secure payments, real-time digital transactions, authentication protocols, and seamless integration across banks, mobile devices, and cloud platforms.

In Québec, companies building and commercializing these solutions can benefit significantly from the Incentive Deduction for the Commercialization of Innovations (IDCI), also known as the IP Box. But few in the financial software space are taking full advantage of it.

As navigating the IP Box in fintech is particularly demanding due to the sector’s complexity.

The Challenge: Claiming the IP Box for Financial Middleware in Québec

Unlike consumer apps or standalone software, middleware solutions in the financial sector are often:

• Deeply embedded within client systems or partner infrastructures
• Co-developed or customized for multiple platforms or payment processors
• Governed by rigorous compliance, certification, and IP ownership agreements
• Built using modular architectures where the IP is distributed across multiple layers of abstraction

These factors create obstacles in mapping specific revenues to a Qualified IP Asset (QIPA) and in demonstrating the Nexus between Quebec-based R&D and global income.

Middleware frequently evolves gradually over several years through agile development, making it challenging to clearly document and separate IP creation linked to specific revenue-generating features or patented innovations.

The Solution: A Strategic, Technical Approach to Maximizing IP Box Benefits in Financial Software

A major French-based financial software group with a Montréal based company specializing in middleware for global payment networks recently faced this exact situation. Despite holding valuable protected technologies and proprietary software, the company struggled to link its complex architecture to a defensible IP Box claim.

• Deconstructed the middleware stack to identify eligible QIPAs (including copyrighted software and protected protocols)
• Built a custom nexus attribution model that could allocate global revenue streams to R&D work conducted in Quebec
• Consolidated SR&ED and technical documentation to demonstrate a continuous R&D-to-commercialization link
• Guided the client through income structuring and compliance across multiple jurisdictions

The result: a successful claim under the Quebec IP Box, leading to a significant reduction in the company’s effective tax rate on high-margin software licensing income.

Ayming Expert, Mehdi Benzehda
IT Consultant, SR&ED Tax Credit & IP Box

Why Financial Software Companies Rely on Ayming as Their Expert Partner

Navigating the IP Box in fintech requires more than tax expertise, it requires:

• A deep understanding of software architecture and middleware systems
• The ability to bridge R&D documentation with commercialization strategy
• Insight into IP ownership, licensing, and transfer pricing in regulated industries

That’s where Ayming excels. Our team of fiscal and technical experts works hand-in-hand with innovation leaders to unlock tax savings while maintaining full audit readiness and regulatory compliance.

Contact Ayming today to explore your eligibility.

If you’re a financial technology company operating in Quebec, and you’re building innovative software or platforms, you may already qualify for substantial benefits under the IP Box.

We’ll help you identify what qualifies, build a defendable claim, and optimize your tax outcomes across SR&ED and IP Box incentives.