01-11-2020 03:57 AM
Go to solutionHello
The Income which we get from Udemy , will be it considered as effectively connected or non effectively connected based on US laws , Considering the fact that i am Indian and never visited USA and i am self employed and paying my taxes in India.
Solved! Go to Solution.
01-14-2020 04:54 AM
Go to solutionHi Vikas,
It sounds like you're wondering about the "effectively connected income" that would help you choose between forms.
Form W-8ECI is used by non-US individuals or businesses who earn "effectively connected income" (ECI) per the IRS, by engaging in a US trade or business. Simply receiving income from a US company (like Udemy) doesn't create a US trade or business. Similarly, the fact that US students may enroll in your courses doesn't necessarily create a US trade or business.
Hope this helps!
Eliana Cerna
01-14-2020 04:54 AM
Go to solutionHi Vikas,
It sounds like you're wondering about the "effectively connected income" that would help you choose between forms.
Form W-8ECI is used by non-US individuals or businesses who earn "effectively connected income" (ECI) per the IRS, by engaging in a US trade or business. Simply receiving income from a US company (like Udemy) doesn't create a US trade or business. Similarly, the fact that US students may enroll in your courses doesn't necessarily create a US trade or business.
Hope this helps!
Eliana Cerna
01-21-2020 01:26 AM
Go to solutionHi Eliana,
can you answer it in simple terms? So is our income from Udemy considered ECI or non-ECI?
01-21-2020 05:14 AM - edited 01-21-2020 05:18 AM
Go to solutionHello Keith
Based on my google search and confirmation by Eliana i found that royalty income and passive income is considered as non effectively connected income at least for non US citizens.
Please note i am not a tax expert . I believe i am right but please also do your own research and please don't rely on me completely .
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