Instructions for Form W-8ECI Department of the Treasury

Internal Revenue Service

(Rev. July 2017)

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 Form W-8BEN-E, Form W-8EXP, or Form W-8IMY (as
unless otherwise noted. appropriate) for income that is not effectively connected.
Future Developments. For the latest information about If you submit Form W-8ECI to a partnership, the
developments related to Form W-8ECI and its income claimed to be effectively connected with the
instructions, such as legislation enacted after they were conduct of a U.S. trade or business is subject to
published, go to [Link]/FormW8ECI. withholding under section 1446. If a nominee holds an
interest in a partnership on your behalf, you, not the
What's New nominee, must submit the form to the partnership or
These instructions have been updated to reflect nominee that is the withholding agent.
temporary and final regulations under chapters 3 and 4 If you are a foreign partnership, a foreign simple trust,
published in January 2017. These instructions include or a foreign grantor trust with effectively connected
additional guidance for when a foreign TIN or date of birth income, you can submit Form W-8ECI without attaching
is required to be included on Form W-8ECI. In addition, Forms W-8BEN, W-8BEN-E, or other documentation for
these instructions include guidance about the use of your foreign partners, beneficiaries, or owners.
electronic signatures.
A withholding agent or payer of the income can rely on
General Instructions a properly completed Form W-8ECI to treat the payment
associated with the Form W-8ECI as a payment to a
Note. For definitions of terms used throughout these foreign person who beneficially owns the amounts paid
instructions, see Definitions, later. and is either entitled to an exemption from withholding
under sections 1441, 1442, 1471, or 1472 because the
Purpose of Form income is effectively connected with the conduct of a
Foreign persons are generally subject to U.S. tax at a 30% trade or business in the United States or subject to
rate on income they receive from U.S. sources. However, withholding under section 1446.
no withholding under section 1441 or 1442 is required on
Provide Form W-8ECI to the withholding agent or payer
income that is, or is deemed to be, effectively connected
before income is paid, credited, or allocated to you.
with the conduct of a trade or business in the United
Failure by a beneficial owner to provide a Form W-8ECI
States and is includible in the beneficial owner's gross
when requested may lead to withholding at the 30% rate
income for the tax year.
or the backup withholding rate under section 3406.
This withholding exemption does not apply to personal Additional information. For additional information and
services income and income subject to withholding under instructions for the withholding agent, see the Instructions
section 1445 (dispositions of U.S. real property interests) for the Requester of Forms W-8BEN, W-8BEN-E,
or section 1446 (foreign partner's share of effectively W-8ECI, W-8EXP, and W-8IMY.
connected income).
Income effectively connected with the conduct of a
Who Must Provide Form W-8ECI
trade or business in the United States is not a You must give Form W-8ECI to the withholding agent or
withholdable payment under chapter 4 and thus is not payer if you are a foreign person and you are the
subject to withholding under sections 1471 or 1472. beneficial owner of U.S. source income that is (or is
deemed to be) effectively connected with the conduct of a
If you receive effectively connected income from trade or business within the United States or are an entity
sources in the United States, you must provide Form (including a foreign partnership or foreign trust) engaged
W-8ECI to: in a U.S. trade or business submitting this form on behalf
Establish that you are not a U.S. person, of your owners, partners, or beneficiaries.
Claim that you are the beneficial owner of the income
for which Form W-8ECI is being provided or are an entity Do not use Form W-8ECI if:
engaged in a U.S. trade or business submitting Form You are a nonresident alien individual who claims
W-8ECI on behalf of your owners, partners, or exemption from withholding on compensation for
beneficiaries, and independent or certain dependent personal services
Claim that the income is effectively connected with the performed in the United States. Instead, provide Form
conduct of a trade or business in the United States. 8233 or Form W-4.
You are the beneficial owner of a payment subject to
If you expect to receive both income that is effectively withholding and are claiming an exemption from
connected and income that is not effectively connected withholding for a reason other than a claim that the
from a withholding agent, you must provide Form W-8ECI income is effectively connected with the conduct of a
for the effectively connected income and Form W-8BEN, trade or business in the United States. For example, if you

Jul 05, 2017 Cat. No. 25902V

are a foreign person who is the beneficial owner of U.S. income to you. Give Form W-8ECI to the person
source income that is not effectively connected with a requesting it before the payment is made, credited, or
U.S. trade or business and you are claiming a reduced allocated. If you do not provide Form W-8ECI, the
rate of withholding under an applicable income tax treaty withholding agent can have to withhold at the 30% rate or
in effect, do not use Form W-8ECI. Instead, provide Form the backup withholding rate. A separate Form W-8ECI
W-8BEN or Form W-8BEN-E. generally must be given to each withholding agent.
You are a foreign person receiving proceeds from the U.S. branch of foreign bank or insurance company.
disposition of a U.S. real property interest. Instead, see A payment to a U.S. branch of a foreign bank or a foreign
Form 8288-B. insurance company that is subject to U.S. regulation by
You are filing for a foreign government, international the Federal Reserve Board or state insurance authorities
organization, foreign central bank of issue, foreign is presumed to be effectively connected with the conduct
tax-exempt organization, foreign private foundation, or
of a trade or business in the United States if the
government of a U.S. possession claiming the
withholding agent has an EIN provided by the branch. The
applicability of section 115(2), 501(c), 892, 895, or
presumption does not apply if the branch provides a
1443(b). Instead, provide Form W-8EXP. However, you
withholding agent with a Form W-8BEN-E for the income.
should use Form W-8BEN-E if you are claiming treaty
benefits or are providing the form only to claim exempt Expiration of Form W-8ECI. Generally, a Form W-8ECI
recipient status for backup withholding purposes. You will remain valid for a period starting on the date the form
should use Form W-8ECI, however, if you received is signed and ending on the last day of the third
effectively connected income (for example, income from succeeding calendar year, unless a change in
commercial activities). circumstances makes any information on the form
You are acting as an intermediary (acting not for your incorrect. For example, a Form W-8ECI signed on
own account or for that of your partners, but for the September 30, 2017, generally remains valid through
account of others as an agent, nominee, or custodian) or December 31, 2020.
qualified intermediary with respect to a payment subject to Change in circumstances. If a change in circumstances
withholding. Instead, provide Form W-8IMY. makes any information on the Form W-8ECI you have
You are a foreign partnership or foreign trust acting in submitted incorrect, you must notify the withholding agent
your capacity as a withholding foreign partnership or a or payer within 30 days of the change in circumstances
withholding foreign trust for purposes of sections 1441, and you must file a new Form W-8ECI or other
1442, and 1471 through 1474. A withholding foreign appropriate form. For example, if during the tax year any
partnership is, generally, a foreign partnership that has part or all of the income is no longer effectively connected
entered into a withholding agreement with the IRS under with the conduct of a trade or business in the United
which it agrees to assume primary withholding States, your Form W-8ECI is no longer valid. You must
responsibility for each partner's distributive share of notify the withholding agent and provide Form W-8BEN,
income subject to withholding that is paid to the W-8BEN-E, W-8EXP, or W-8IMY. See Regulations
partnership. A withholding foreign trust is, generally, a section 1.1441-1(e)(4)(ii)(D) for the definition of a change
foreign simple trust or a foreign grantor trust that has in circumstances for purposes of chapter 3, and
entered into a withholding agreement with the IRS under Regulations section 1.1471-(c)(6)(ii)(E) for purposes of
which it agrees to assume primary withholding chapter 4.
responsibility for each beneficiary's or owner's distributive
share of income subject to withholding that is paid to the Definitions
trust. Instead, provide Form W-8IMY.
You are a foreign corporation that is a personal holding Beneficial owner. For payments other than those for
company receiving compensation described in section which a reduced rate of withholding is claimed under an
543(a)(7). Such compensation is not exempt from income tax treaty, the beneficial owner of income is
withholding as effectively connected income but can be generally the person who is required under U.S. tax
exempt from withholding on another basis. principles to include the income in gross income on a tax
You are a foreign partner in a partnership and the return. A person is not a beneficial owner of income,
income allocated to you from the partnership is effectively however, to the extent that person is receiving the income
connected with the conduct of the partnership's trade or as a nominee, agent, or custodian, or to the extent the
business in the United States. Instead, provide Form person is a conduit whose participation in a transaction is
W-8BEN or Form W-8BEN-E (as applicable). However, if disregarded. In the case of amounts paid that do not
you made or will make an election under section 871(d) or constitute income, beneficial ownership is determined as
882(d), provide Form W-8ECI. In addition, if you are if the payment were income.
otherwise engaged in a trade or business in the United Foreign partnerships, foreign simple trusts, and foreign
States and you want your allocable share of income from grantor trusts are not the beneficial owners of income paid
the partnership to be subject to withholding under section to the partnership or trust. The beneficial owners of
1446, provide Form W-8ECI. income paid to a foreign partnership are generally the
partners in the partnership, provided that the partner is not
Giving Form W-8ECI to the withholding agent. Do not
itself a partnership, foreign simple or grantor trust,
send Form W-8ECI to the IRS. Instead, give it to the
nominee or other agent. The beneficial owners of income
person who is requesting it from you. Generally, this will
paid to a foreign simple trust (a foreign trust that is
be the person from whom you receive the payment, who
described in section 651(a)) are generally the
credits your account, or a partnership that allocates

-2- Instructions for Form W-8ECI (Rev. 7-2017)

beneficiaries of the trust, if the beneficiary is not a foreign Effectively connected income, after allowable
partnership, foreign simple or grantor trust, nominee or deductions, is taxed at graduated rates applicable to U.S.
other agent. The beneficial owners of a foreign grantor persons and resident aliens, rather than at the 30% rate.
trust (a foreign trust to the extent that all or a portion of the You must report this income on your annual U.S. income
income of the trust is treated as owned by the grantor or tax or information return.
another person under sections 671 through 679) are the A partnership that has effectively connected income
persons treated as the owners of the trust. The beneficial allocable to foreign partners is generally required to
owners of income paid to a foreign complex trust (a withhold tax under section 1446. The withholding tax rate
foreign trust that is not a foreign simple trust or foreign on a partner's share of effectively connected income is
grantor trust) is the trust itself. 35% for corporate partners and 39.6% for all other taxable
Generally, these beneficial owner rules apply for partners. In certain circumstances the partnership can
purposes of sections 1441, 1442, and 1446, except that withhold tax at the highest applicable rate to a particular
section 1446 requires a foreign simple trust to provide a type of income (for example, long-term capital gain
Form W-8 on its own behalf rather than on behalf of the allocated to a noncorporate partner). Any amount withheld
beneficiary of such trust. under section 1446 on your behalf, and reflected on Form
The beneficial owner of income paid to a foreign estate 8805 issued by the partnership to you, can be credited on
is the estate itself. your U.S. income tax return.
A payment to a U.S. partnership, U.S. trust, or U.S. Foreign person. A foreign person includes a
estate is treated as a payment to a U.S. payee. A U.S. nonresident alien individual, a foreign corporation, a
partnership, trust, or estate should provide the withholding foreign partnership, a foreign trust, a foreign estate, and
agent with a Form W-9. However, for purposes of section any other person that’s not a U.S. person.
1446, a U.S. grantor trust shall not provide the withholding Nonresident alien individual. Any individual who is not
agent a Form W-9. Instead, the grantor or other owner a citizen or resident alien of the United States is a
must provide Form W-8 or Form W-9 as appropriate. nonresident alien individual. An alien individual meeting
Chapter 3. Chapter 3 means chapter 3 of the Internal either the “green card test” or the “substantial presence
Revenue Code (Withholding of Tax on Nonresident Aliens test” for the calendar year is a resident alien. Any person
and Foreign Corporations). Chapter 3 contains sections not meeting either test is a nonresident alien individual.
1441 through 1464. Additionally, an alien individual who is treated as a
nonresident alien pursuant to Regulations section
Chapter 4. Chapter 4 means chapter 4 of the Internal
301.7701(b)-7 for purposes of computing the individual's
Revenue Code (Taxes to Enforce Reporting on Certain
U.S. tax liability, or an alien individual who is a bona fide
Foreign Accounts). Chapter 4 contains sections 1471
resident of Puerto Rico, Guam, the Commonwealth of the
through 1474.
Northern Mariana Islands, the U.S. Virgin Islands, or
Disregarded entity. A business entity that has a single American Samoa is a nonresident alien individual.
owner and is not a corporation under Regulations section See Pub. 519 for more information on resident and
301.7701-2(b) is disregarded as an entity separate from nonresident alien status including information about the
its owner. A disregarded entity does not submit Form “green card test” and “substantial presence test.”
W-8ECI to a partnership for purposes of section 1446.
Instead, the owner of such entity provides the appropriate Even though a nonresident alien individual
documentation. See Regulations section 1.1446-1. ! married to a U.S. citizen or resident alien can
CAUTION choose to be treated as a resident alien for certain
Effectively connected income. Generally, when a purposes (for example, filing a joint income tax return),
foreign person engages in a trade or business in the such individual is still treated as a nonresident alien for
United States, all income from sources in the United withholding tax purposes on all income except wages.
States other than fixed or determinable annual or
periodical (FDAP) income (for example, interest, Withholding agent. Any person, U.S. or foreign, that has
dividends, rents, and certain similar amounts) is control, receipt, custody, disposal, or payment of U.S.
considered income effectively connected with a U.S. trade source FDAP income subject to chapter 3 withholding is a
or business. FDAP income may or may not be effectively withholding agent. For purposes of chapter 4, any person,
connected with a U.S. trade or business. Factors to be U.S. or foreign, that has control, receipt, custody,
considered to determine whether FDAP income and disposal, or payment of a withholdable payment is a
similar amounts from U.S. sources are effectively withholding agent. The withholding agent can be an
connected with a U.S. trade or business include whether: individual, corporation, partnership, trust, association, or
The income is from assets used in, or held for use in, any other entity including (but not limited to) any foreign
the conduct of that trade or business, or intermediary, foreign partnership, and U.S. branches
The activities of that trade or business were a material treated as U.S. person. Generally, the person who pays
factor in the realization of the income. (or causes to be paid) an amount subject to withholding to
There are special rules for determining whether income the foreign person (or to its agent) must withhold.
from securities is effectively connected with the active For purposes of section 1446, the withholding agent is
conduct of a U.S. banking, financing, or similar business. the partnership conducting the trade or business in the
See section 864(c)(4)(B)(ii) and Regulations section United States. For a publicly traded partnership, the
1.864-4(c)(5)(ii) for more information. withholding agent can be the partnership, a nominee

Instructions for Form W-8ECI (Rev. 7-2017) -3-

holding an interest on behalf of a foreign person, or both. under U.S. tax principles. If more than one classification
See Regulations sections 1.1446-1 through 1.1446-6. applies to you, select the most specific status available.
For example, if you are a private foundation, you are also
Withholdable payment. A withholdable payment means
considered a tax-exempt organization, and you should
any payment of U.S. source FDAP income, subject to
check the box for private foundation rather than the box
certain exemptions described in Regulations sections
for tax-exempt organization.
1.1471-2(b) and 1.1473-1(a). However, no exceptions to
withholding on U.S. source FDAP income for purposes Line 5. Your permanent residence address is the
other than chapter 4 apply when determining whether a address in the country where you claim to be a resident
payment is a withholdable payment. For example, an for that country's income tax. Do not show the address of
exclusion from an amount subject to withholding under a financial institution, a post office box, or an address
Regulations section 1.1441-2(a) does not apply for used solely for mailing purposes unless such address is
purposes of determining whether a payment constitutes a the registered address of an entity identified on line 1
withholdable payment. Under chapter 4, a payment of which does not have another address in the jurisdiction. If
effectively connected income is not a withholdable you are an individual who does not have a tax residence
payment. in any country, your permanent residence is where you
normally reside. If you are not an individual and you do not
U.S. person. A U.S. person is defined in section 7701(a)
have a tax residence in any country, the permanent
(30) and includes an individual who is a citizen or resident
residence address is where you maintain your principal
of the United States, as well as domestic partnerships,
office.
corporations, trusts, and estates.
Line 6. Enter your business address in the United States.
Specific Instructions Do not show a post office box.
Line 7. Enter your U.S. taxpayer identification number
Part I (TIN). A [Link] is a social security number (SSN),
employer identification number (EIN), or IRS individual
Line 1. Enter your name. If you are providing this form for taxpayer identification number (ITIN). Check the
a disregarded entity with a single owner who is a foreign appropriate box for the type of U.S. TIN you are providing.
person, this form should be completed and signed by the You are required to provide a TIN for this form to be valid.
foreign single owner. If the account to which a payment is
made or credited is in the name of the disregarded entity, If you are an individual, you are generally required to
the foreign single owner can inform the withholding agent enter your SSN. To apply for an SSN, get Form SS-5 from
of this fact by including the name of the disregarded entity a Social Security Administration (SSA) office or online at
on line 3 of Part I of the form. [Link]/forms/[Link]. If in the United States, you
can call the SSA at 1-800-772-1213. Fill in Form SS-5 and
If you own the income or account jointly with one return it to the SSA.
TIP or more other persons, the income or account will If you do not have an SSN and are not eligible to get
be treated by the withholding agent as owned by a
one, you must get an ITIN. To apply for an ITIN, file Form
foreign person if Forms W-8ECI are provided by all of the
W-7 with the IRS. It usually takes 4-6 weeks to get an
owners. If the withholding agent receives a Form W-9
ITIN.
from any of the joint owners the payment must be treated
as made to a U.S. person. If you are not an individual (for example, if you are a
foreign estate or trust), or you are an individual who is an
Line 2. If you are providing this form for a corporation, employer or who is engaged in a U.S. trade or business
enter the country of incorporation. If you are filing for as a sole proprietor, use Form SS-4 to obtain an EIN. If
another type of entity, enter the country under whose laws you are a disregarded entity, enter the U.S. TIN of your
the entity is created, organized, or governed. If you are an foreign single owner.
individual, provide your country of residence for tax You can also apply for an EIN online. For more
purposes. TIP information, visit [Link]/businesses/small-
Line 3. If you are providing this form for a disregarded businesses-self-employed/apply-for-an-employer-
entity, enter the name of the disregarded entity receiving identification-number-ein-online.
the payment. This line is not required but can assist the
withholding agent that is making a payment to you. The Line 8. If you are providing this Form W-8ECI to
withholding agent can request additional referencing document yourself as an account holder (as defined in
information (such as your account number) which should Regulations section 1.1471-5(a)(3)) with respect to a
be entered on line 9. When completing this form, do not financial account (as defined in Regulations section
provide information concerning the disregarded entity on 1.1471-5(b)) that you hold at a U.S. office of a financial
any line other than this line 3 or line 9. Instead, you should institution (including a U.S. branch of an FFI) and you
complete the form using the information of the owner of receive U.S. source income reportable on a Form 1042-S
the disregarded entity. associated with this form, you must provide the tax
identifying number (TIN) issued to you by your jurisdiction
Line 4. Check the box that applies. By checking a box, of tax residence identified on line 5 unless:
you are representing that you qualify for this classification. You have not been issued a TIN (including if the
You must check the one box that represents your jurisdiction does not issue TINs), or
classification (for example, corporation, partnership, etc.)

-4- Instructions for Form W-8ECI (Rev. 7-2017)

 You properly identified yourself as a government, in making, executing, and presenting the form. This
central bank of issue, or international organization on requirement does not apply to a partnership or other
line 4. flow-through entity submitting this form with respect to a
If you are providing this form to document a financial payment of effectively connected income that is
account described above but you do not enter a TIN on beneficially owned by the entity’s partners or owners.
line 8 and you are not a government, central bank of Form 2848 can be used for this purpose. The agent, as
issue, or international organization, you must provide the well as the beneficial owner, can incur liability for the
withholding agent with an explanation of why you have not penalties provided for an erroneous, false, or fraudulent
been issued a TIN. For this purpose, an explanation is a form.
statement that you are not legally required to obtain a TIN A withholding agent can allow you to provide this form
in your jurisdiction of tax residence. The explanation may with an electronic signature. The electronic signature must
be written on line 8, in the margins of the form, or on a indicate that the form was electronically signed by a
separate attached statement associated with the form. If person authorized to do so (for example, with a time and
you are writing the explanation on line 8, you can shorten date stamp and statement that the form has been
it to "not legally required." Do not write "not applicable." electronically signed). Simply typing your name into the
signature line is not an electronic signature.
Line 9. You or the withholding agent requesting this form
can use this line to include any referencing information If any information on Form W-8ECI becomes
that is useful to the withholding agent in carrying out its ! incorrect, you must submit a correct new form
obligations. For example, you can use line 9 to include the CAUTION within 30 days to the requester of this form unless

name and number of the account for which you are you will not receive a future payment from the withholding
providing the form. agent that would require an updated Form W-8.
Line 10. If you are providing this Form W-8ECI to
document yourself as an account holder with respect to a Paperwork Reduction Act Notice. We ask for the
financial account (as described in line 8 above) that you information on this form to carry out the Internal Revenue
hold at a U.S. office of a financial institution (including a laws of the United States. If you want to receive
U.S. branch of an FFI), provide your date of birth if you are exemption from withholding on income effectively
an individual. Use the following format to input your connected with the conduct of a trade or business in the
information: MM-DD-YYYY. For example, if you were born United States, you are required to provide the information.
on April 15, 1975, you would enter 04-15-1975. We need it to ensure that you are complying with these
laws and to allow us to figure and collect the right amount
Line 11. You must specify the items of income that are of tax.
effectively connected with the conduct of a trade or
business in the United States. You will generally have to You are not required to provide the information
provide Form W-8BEN, Form W-8BEN-E, Form W-8EXP, requested on a form that is subject to the Paperwork
or Form W-8IMY for those items from U.S. sources that Reduction Act unless the form displays a valid OMB
are not effectively connected with the conduct of a trade control number. Books or records relating to a form or its
or business in the United States. instructions must be retained as long as their contents can
If you are providing this form to a partnership because become material in the administration of any Internal
you are a partner and have made an election under Revenue law. Generally, tax returns and return
section 871(d) or section 882(d), attach a copy of the information are confidential, as required by section 6103.
election to the form. If you have not made the election, but The time needed to complete and file this form will vary
intend to do so effective for the current tax year, attach a depending on individual circumstances. The estimated
statement to the form indicating your intent. See burden for business taxpayers filing this form is approved
Regulations section 1.871-10(d)(3). under OMB control number 1545-0123. The estimated
burden for all other taxpayers who file this form is shown
Part II below.
Signature. Form W-8ECI must be signed and dated by
The estimated average time is: Recordkeeping, 4 hr.,
the beneficial owner of the income, or, if the beneficial
4 min.; Learning about the law or the form, 1 hr., 51
owner is not an individual, by an authorized representative
min.; Preparing and providing the form, 3 hr., 12 min.
or officer of the beneficial owner. If an authorized
representative or agent is completing Form W-8ECI on If you have comments concerning the accuracy of
behalf of the beneficial owner of the income, the these time estimates or suggestions for making this form
representative or agent must check the box to certify that simpler, we would be happy to hear from you. You can
he or she has the legal capacity to sign for the person send us comments from [Link]/FormComments. You
identified on line 1. If Form W-8ECI is completed by an can write to the Internal Revenue Service, Tax Forms and
agent acting under a duly authorized power of attorney for Publications, 1111 Constitution Ave. NW, IR-6526,
the beneficial owner, the form must be accompanied by Washington, DC 20224. Do not send Form W-8ECI to
the power of attorney in proper form or a copy thereof this office. Instead, give it to your withholding agent.
specifically authorizing the agent to represent the principal

Instructions for Form W-8ECI (Rev. 7-2017) -5-