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I have a question about the use of W8ECI requirements.

I am a foreign nonresident noncitizen living in South America. I have opened a savings account in a US bank filing a W8BEN as I do not live in the US.

I have a property in Bolivia that is being rented in Airbnb (a US service) and have them pay the income from it directly to a US PayPal account associated with the US bank account. I am now requested by PayPal to file a W8ECI, but this income is not sourced in the US.

Should I file this and should someone be subjected to tax payments for this?

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    AirBNB finances seem to be done in Ireland now rather than USA (at least for the stays that I've done).
    – WGroleau
    Apr 1, 2023 at 21:51

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A US company is paying you through a US Paypal to a US bank account.

You know that it's for a foreign business, but no-one else does. You can either argue with Paypal until they close your account or give them what they want. It doesn't change the underlying transaction and doesn't change the tax rules.

You should, however, be taxed on this income in your home country in South America. The way you described the transaction it may look like an attempt at tax evasion at home. If the IRS comes after you and demands its share, you'll have a hard time to prove that the income is not US-sourced without a filed and accepted tax return at home.

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  • you'll have a hard time to prove that the income is not US-sourced without a filed and accepted tax return at home => whether or not there's a tax return is not really relevant as it doesn't prove the income is not US-based. What they'll rather ask for is a receipt showing the origin of funds. Apr 2, 2023 at 2:43

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