FORM W-8ECI – Certificate of Foreign Person’s Claim for Exemption From Withholding on Income Effectively Connected with the Conduct Of a Trade or Business in the United States.
Generally, a foreign person is subject to US tax on its US source income. Most types of US source income received by a foreign person are subject to US tax of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person’s country of residence and the United States. The tax is generally withheld from the payment made to the foreign person
Form W-8ECI, "Certificate of Foreign Person's Claim for Exemption from Withholding on Income Effectively Connected with the Conduct of a Trade or Business in the United States", is required by your management company. Without this form in their files, they are required by US federal law to withhold 30% of your rental income and pay that amount to IRS.
Expiration of Form W-8ECI. Generally, a Form W-8ECI will remain in effect for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a Form W-8ECI signed on September 30, 2008, remains valid through December 31, 2011. Upon the expiration of the 3-year period, you must provide a new Form W-8ECI.
You should complete and sign form W-8ECI (one per owner) and give to your management company or booking agent to hold on file. We suggest that you keep copies of the completed and signed forms for your records.
Fill-In Form W-8ECI - http://www.irs.gov/pub/irs-pdf/fw8eci.pdf
Instructions for Completing Form W-8ECI