Instructions For Form W-8eci - Certificate Of Foreign Person'S Claim That Income Is Effectively Connected With The Conduct Of A Trade Or Business In The United States - 2014
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5Instructions for Form W-8ECI
Department of the Treasury
Internal Revenue Service
(Rev. February 2014)
Certificate of Foreign Person's Claim That Income Is Effectively Connected With
the Conduct of a Trade or Business in the United States
Section references are to the Internal Revenue Code
income, you may submit Form W-8ECI without attaching
unless otherwise noted.
Forms W-8BEN, W-8BEN-E, or other documentation for
your foreign partners, beneficiaries, or owners.
Future Developments. For the latest information about
developments related to Form W-8ECI and its
A withholding agent or payer of the income may rely on
instructions, such as legislation enacted after they were
a properly completed Form W-8ECI to treat the payment
published, go to
associated with the Form W-8ECI as a payment to a
foreign person who beneficially owns the amounts paid
General Instructions
and is either entitled to an exemption from withholding
under sections 1441, 1442, 1471, or 1472 because the
Note. For definitions of terms used throughout these
income is effectively connected with the conduct of a
instructions, see Definitions, later.
trade or business in the United States or subject to
Purpose of Form
withholding under section 1446.
Provide Form W-8ECI to the withholding agent or payer
Foreign persons are generally subject to U.S. tax at a 30%
before income is paid, credited, or allocated to you.
rate on income they receive from U.S. sources. However,
Failure by a beneficial owner to provide a Form W-8ECI
no withholding under section 1441 or 1442 is required on
when requested may lead to withholding at the 30% rate
income that is, or is deemed to be, effectively connected
or the backup withholding rate under section 3406.
with the conduct of a trade or business in the United
States and is includible in the beneficial owner's gross
Additional information. For additional information and
income for the tax year.
instructions for the withholding agent, see the Instructions
This withholding exemption does not apply to personal
for the Requester of Forms W-8BEN, W-8BEN-E,
services income and income subject to withholding under
W-8ECI, W-8EXP, and W-8IMY.
section 1445 (dispositions of U.S. real property interests)
Who Must Provide Form W-8ECI
or section 1446 (foreign partner's share of effectively
connected income).
You must give Form W-8ECI to the withholding agent or
payer if you are a foreign person and you are the
Income effectively connected with the conduct of a
beneficial owner of U.S. source income that is (or is
trade or business in the United States is not a
deemed to be) effectively connected with the conduct of a
withholdable payment under chapter 4 and thus is not
trade or business within the United States.
subject to withholding under sections 1471 or 1472.
If you receive effectively connected income from
Do not use Form W-8ECI if:
sources in the United States, you must provide Form
You are a nonresident alien individual who claims
W-8ECI to:
exemption from withholding on compensation for
Establish that you are not a U.S. person,
independent or certain dependent personal services
Claim that you are the beneficial owner of the income
performed in the United States. Instead, provide Form
8233, Exemption from Withholding on Compensation for
for which Form W-8ECI is being provided or are an entity
Independent (and Certain Dependent) Personal Services
engaged in a U.S. trade or business submitting Form
of a Nonresident Alien Individual, or Form W-4,
W-8ECI on behalf of your owners or partners, and
Employee's Withholding Allowance Certificate.
Claim that the income is effectively connected with the
You are the beneficial owner of a payment subject to
conduct of a trade or business in the United States.
withholding and are claiming an exemption from
If you expect to receive both income that is effectively
withholding for a reason other than a claim that the
connected and income that is not effectively connected
income is effectively connected with the conduct of a
from a withholding agent, you must provide Form W-8ECI
trade or business in the United States. For example, if you
for the effectively connected income and Form W-8BEN,
are a foreign person who is the beneficial owner of U.S.
Form W-8BEN-E, Form W-8EXP, or Form W-8IMY (as
source income that is not effectively connected with a
appropriate) for income that is not effectively connected.
U.S. trade or business and you are claiming a reduced
If you submit Form W-8ECI to a partnership, the
rate of withholding under an applicable income tax treaty
income claimed to be effectively connected with the
in effect, do not use Form W-8ECI. Instead, provide Form
conduct of a U.S. trade or business is subject to
W-8BEN, Certificate of Foreign Status of Beneficial Owner
withholding under section 1446. If a nominee holds an
for United States Tax Withholding (Individuals) or Form
interest in a partnership on your behalf, you, not the
W-8BEN-E, Certificate of Status of Beneficial Owner for
nominee, must submit the form to the partnership or
United States Tax Withholding and Reporting (Entities).
nominee that is the withholding agent.
You are a foreign person receiving proceeds from the
If you are a foreign partnership, a foreign simple trust,
disposition of a U.S. real property interest. Instead, see
or a foreign grantor trust with effectively connected
Form 8288-B, Application for Withholding Certificate for
Feb 25, 2014
Cat. No. 25902V
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