Form W-8ECI: Claiming Income Effectively Connected With a U.S. Business

Last updated October 27, 2026

Quick answer

Form W-8ECI is used by a foreign person or entity to certify to a U.S. payer that the income it receives is effectively connected with the conduct of a trade or business in the United States. That income is not subject to the flat 30% withholding, but it must be reported on a U.S. income tax return and is taxed at regular rates. The form requires a U.S. taxpayer identification number and is given to the payer, not the IRS.

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Who needs Form W-8ECI

• Foreign individuals or companies actively doing business in the United States

• Foreign persons whose U.S. income is reported on a U.S. tax return (e.g. Form 1040-NR or 1120-F)

Form W-8ECI at a glance

Given to

The payer or withholding agent — not the IRS

Effect

No 30% withholding on the effectively connected income

Tax return

The income must be reported on a U.S. income tax return

U.S. TIN

Required — an SSN, ITIN or EIN

Validity

Generally until the end of the third calendar year after signing

How to complete Form W-8ECI

1. Confirm the income is effectively connected

The income must come from a trade or business you actually conduct in the United States. Passive investment income usually belongs on W-8BEN or W-8BEN-E instead.

2. Get a U.S. taxpayer identification number

W-8ECI cannot be completed without an SSN, ITIN or EIN.

3. Enter your details and the income

Provide name, country, entity type, addresses and U.S. TIN, and list the items of income covered by the form.

4. Sign and give it to the payer

Then report the income on your U.S. tax return for the year.

Form W-8ECI: frequently asked questions

What is the difference between W-8ECI and W-8BEN?

W-8BEN claims foreign status and treaty-reduced withholding on income that is not connected with a U.S. business. W-8ECI says the income is connected with a U.S. trade or business, so it is taxed on a U.S. return instead of through withholding.

Do I need an EIN or ITIN for W-8ECI?

Yes. A U.S. taxpayer identification number is mandatory on Form W-8ECI.

Does W-8ECI mean I pay no U.S. tax?

No. It removes the 30% withholding at source, but the income must still be reported on a U.S. tax return and is taxed at regular graduated rates.

This guide is general information about IRS requirements, not tax or legal advice. Rules and amounts can change — check the current IRS instructions or a tax professional for your situation. How we write our guides