Amazon US has exchanged data with China's inland tax bureau! Cross-border business tax compliance is imminent! Or apply for a Hong Kong identity or register a Hong Kong company to find a solution!
Published: 2026-01-23

Enterprise Caiying Group to provide the United States / Singapore / Japan / Thailand / Malaysia / Canada / Mexico / Brazil / UK / France / New Zealand / Japan / Singapore / Vietnam / Indonesia / Malaysia and other foreign companies registered in the relevant business tax services, but also to provide Hong Kong companies / Shenzhen companies / Guangzhou companies / Shanghai companies / Hangzhou companies / Beijing companies / Hainan companies and other domestic companies registered corporate services, company annual audit / bookkeeping tax / payment of MPF / change of information / bank account opening / ODI filing / BVI registration / Hainan company Company / Shanghai company / Hangzhou company / Beijing company / Hainan company and other domestic company registration of corporate services, company annual audit audit / bookkeeping tax / payment of MPF / change of information / bank account / ODI filing / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you have the need or interested in dropping me (phone and WeChat consulting: 13045886252 ).

Amazon.com has exchanged data with the IRS: Where is the real "breaking point" for Chinese sellers?

In the past few months, many cross-border sellers suddenly found one thing: Amazon US and Europe, no longer "mysterious". Not because of the seal, not because of advertising costs, but - tax information, has been exchanged back to mainland China.

This is not a rumor, but a reality that has already hit the ground. The essence of the matter: it's not that Amazon is "getting tougher", it's that the global tax logic has changed.

Let's start with the conclusion: as long as you sign up for Amazon US with a mainland Chinese company, your account information, is already in the sights of the IRS.

There is only one reason for this: the Automatic Exchange of Information (AEOI) for tax purposes. There are three key systems involved:

  • platform side: Amazon, TIKTOK, Walmart, Fidelity, Tiger.
  • National Tax System.
  • Cross-border clearing-house mechanism (not CRS itself).

Many sellers mistakenly believe, "As long as I don't send money back home, I can't be traced." This is old-world pre-2026 logic.

01 Amazon.com USA × Mainland Chinese companies: why must they be exchanged?

The core of only one sentence: Amazon is a U.S. compliance platform, and between China and the United States, there is already a tax co-examination and information cooperation mechanism. Specifically to the Amazon U.S. station, as long as you:

  • Place of incorporation:Mainland China
  • Store Body:Chinese tax resident
  • Provided China business license, corporate information, address and telephone number.

Then:

  • The platform masters yourReal Controller.
  • The platform masters yourRevenue streams.
  • The platform masters yourCollection Path.

This information.It's not "to give or not to give", but "when to give". So you will see a couple of significant changes in the last two years:

  • Amazon Frequent Requests KYC Supplement.
  • Requests for additionsBeneficiary statement.
  • Requests for updatesTax status.

It's not a platform being evil, it's a compliance obligation.Therefore, tax compliance for cross-border enterprises should not be delayed. If you are in need of tax compliance services, feel free to inquire (WeChat: 13045886252)▼▼▼▼

02 Many people think of the "solution": is it really safe to register a Hong Kong company?

So the first batch of cross-border sellers quickly thought of a solution: registering Amazon US with a Hong Kong company.

The idea.It is established at the platform level, because:

  • Hong Kong tax system ≠ Mainland China tax system
  • Amazon does not exchange Hong Kong company data directly to the Inland Revenue Department. True, but it leads to another question.
⚠️ The Invisible Minefield for Hong Kong Companies: CRS

Hong Kong is an official participant in the CRS (Common Reporting Standard). That is to say:

  • You use a Hong Kong company
  • Opening a bank account or investing in a Hong Kong or overseas bank
  • The bank recognizes thatThe ultimate beneficiaries are Chinese tax residents

Then: Bank Submission → Hong Kong Inland Revenue Department Interchange → Inland Revenue Department of China

The link, which isFully legal and automated. The recent large number of U.S. stock accounts being asked to pay back taxes is a significant impact of CRS.

⚠️ Note a key misconception: CRS is not about checking companies, it's about checking "people". However, it has to be said that Hong Kong companies into cross-border e-commerce platform, will indeed have some advantages.

If you plan to register a U.S. company/Singapore company/Japanese company/Thailand company/Malaysia company/Canada company/Mexico company/Brazil company/Britain company/France company/New Zealand company/Japanese company/Singapore company/Vietnamese company/Indonesia company/Dubai company and other foreign companies registered in the relevant business and financial services, or plan to register a Hong Kong company/Shenzhen company/ Guangzhou company / Shanghai company / Hangzhou company / Beijing company / Hainan company and other domestic companies registered business services, the company's annual audit audit / bookkeeping tax / payment of MPF / change of information / bank account / ODI record / BVI registration / tax compliance / cross-border e-commerce accompanied by running on behalf of the operation of the enterprise one-stop service, you can add my WeChat (phone with V: 13045886252) at any time to consult ↓↓ ↓ 

03 What are the business advantages of Hong Kong as a transit point for offshore business?

Important representatives of the Hong Kong Investment Promotion Agency has elaborated on Hong Kong's business advantages at the meeting, encouraging mainland enterprises to make good use of Hong Kong's business advantages, and make full use of Hong Kong as the preferred platform for "going abroad", because Hong Kong's economic freedom is a global leader, the rule of law is excellent, the tax system is simple and competitive, for you to start to talk about Hong Kong's business environment, We will talk about the advantages of Hong Kong's business environment and tax system for you.

1) Tax policy: the cost advantage of simple and low taxes

Hong Kong's tax system is known for its simplicity, transparency and light tax burden, making it one of the world's most tax-friendly environments.

✅ Tiered profits tax system: the tax rate for the first HK$2 million of corporate profits is only 8.25%, and for the portion exceeding HK$2 million, the tax rate is 16.5%. This is a clear advantage over the Mainland's flat corporate income tax rate of 25%.

✅ Offshore Exemption: If your profits come from overseas (e.g. sales on platforms such as Amazon, TikTok Shop, etc.), you can apply for an offshore exemption from Hong Kong profits tax!

✅ Fewer taxes: Hong Kong has no value-added tax, capital gains tax, dividend tax and inheritance tax, making the tax system simpler and clearer.

✅ Double Taxation Avoidance: Taking advantage of Hong Kong's network of tax treaties is also an important tool for tax optimization. To date, Hong Kong has signed DTAs with over 50 countries and territories.

2) Free foreign exchange regime: facilitation of capital movements

As one of the world's three major financial centers, Hong Kong has no foreign exchange control and funds can flow freely in and out of different parts of the world, which can significantly reduce the cost of capital circulation and exchange losses for cross-border entrepreneurs.

✅Multi-currency support: the account can directly receive foreign currencies such as USD, EUR, GBP, etc., and also have the flexibility to transfer money to global suppliers, or even convert into RMB to remit back to the mainland.

✅ Support multi-platform operation: a Hong Kong company can register multiple platforms (Amazon, eBay, Shopify, etc.), and the mainland body to isolate, reduce the risk of "associated with the seal", coupled with the independence of the Hong Kong director, address, more conducive to compliance management.

3) Operational facilitation: logistics and supply chain optimization

Hong Kong is an important free trade port in the world, and most of the goods can be imported and exported tariff-free, which effectively saves logistics cost and time.

Zero tariff policy:Except for special commodities such as tobacco and alcohol, imported and exported goods are exempted from tariffs, reducing procurement and logistics costs.

Efficient customs clearance:As an international logistics hub, Hong Kong offers easy inbound and outbound cargo flow and shortens the lead time for stock preparation.

International Shipping Center:The port of Hong Kong is one of the busiest ports in the world, and top logistics companies such as DHL and FedEx provide fast and reliable international transportation services.

Great location:Proximity to the Mainland facilitates replenishment from Mainland factories while radiating to global markets (e.g. Southeast Asia, Europe and the United States).

Good storage facilities:Hong Kong has a mature warehousing infrastructure to support the flexible stocking needs of cross-border e-commerce.

4)Policy Advantage: A number of entrepreneurial policy support

To encourage the development of specific industries, the Hong Kong Government provides concessions such as additional deduction for R&D expenditures, a special fund for BUD, and tax exemption for start-ups.

✅ Company relocation system: allows overseas companies to directly relocate their place of incorporation to Hong Kong without changing their corporate identity or interrupting their business in order to enjoy the tax benefits and legal protection of Hong Kong, which saves both money and hassle.

✅ Introduction of key enterprises: The Hong Kong Government actively attracts mainland and overseas enterprises to settle in Hong Kong, provides investment and financing support and industrial resource matching, and helps them establish a foothold and further develop in Hong Kong.

✅ Entrepreneurship Support Program: To encourage the development of specific industries, the Hong Kong government provides concessions such as additional deduction for R&D expenditures, special fund for over BUD, and tax exemption for start-ups, etc. The 2025 Policy Address even directly announced 11 favorable measures to support small and medium enterprises (SMEs) to come to Hong Kong to start up their business.

5)Operation policy: simple company registration process

Hong Kong company registration process is relatively simple, the registered legal person is not limited to the country, over 18 years of age can apply for registration, the registered capital is not high, only 10,000 Hong Kong dollars, and fewer documents and formalities required, the approval of the speed, in general, a few working days can be completed within the company registration, which allows enterprises to quickly carry out business. If you need to register a Hong Kong company or start a business in Hong Kong, feel free to inquire (WeChat: 13045886252) or scan the code to make an appointment for processing▼▼▼▼

04 The Real Triangle: Amazon × CRS × Offshore Tax Status

Many cross-border sellers get stuck here becauseLooked at the three things separatelyThe

We put logic together:

1️⃣ What does Amazon look for?
  • Place of Incorporation
  • Who is the real controller?
  • Tax Forms (W-8 / W-9)
  • where the money is flowing
2️⃣ CRS What to look for?
  • Banks, stock accounts
  • Final beneficiaries
  • Tax residency
3️⃣ What does the IRS really care about?
Are you a Chinese tax resident? Do you have global income?

So you will find a cruel reality: only change the main body of the company such as registering a Hong Kong company without changing the tax status, it is true that at present, it will not be reported by the Amazon platform, but sooner or later, the CRS will be penetrated, unless you apply for or plan for a Hong Kong status or a Singapore status or other overseas country status. If you are interested in Hong Kong identity and high talent application, you may directly recognize the QR code to do a qualification assessment:

 If you have a Hong Kong identity, see if you meet the Hong Kong identity renewal requirements, you can also do a renewal assessment ↓↓↓↓

05 What Hong Kong tax advantages can I enjoy with my Hong Kong status?

At the same time, that cross-border e-commerce business owners or executives, in fact, can also layout to apply for Hong Kong identity, tax can also be more advantageous. So, Hong Kong identity can enjoy what Hong Kong tax advantages? Mainland China and Hong Kong implement the policy of one country, two systems, the tax system adopted is different, which also caused the two places to pay tax differentiation, you can visualize the difference between Hong Kong and the mainland tax system through this chart:

06 There is not one, but three truly viable "paths to breakthrough".

The following section, which is particularly critical and what you want to see the most, currently has 3 paths to follow.

✅ Path 1: Platform Compliance (for 90% sellers) - Corporate Tax Compliance.
Keywords:Accept exchange + do structure.

Good for the crowd:

  • Still living in the Mainland
  • Revenue mainly in Mainland China
  • I don't want to compromise my identity.

Core idea:

  • Recognition of Chinese tax resident status
  • inland revenueCompliance approach to do cost, profit and tax rate management.
  • No more fantasies of "total invisibility."

this isThe risk is minimal, but the tax burden is manageableof a road.

✅ Path II: Corporate Structured--Registered Hong Kong company on the cross-border platform

Keywords:separation of the main body (e.g. of a building)

Typical structure:

  • Hong Kong company: the main company of the platform
  • Overseas bank accounts: receipts
  • Mainland China Company: Supply Chain / Service Settlement

The point is:

  • Reasonable pricing
  • Real Business
  • interpretability

⚠️ Note: This is not a "tax shelter", it'sTax Reasonable and Compliant Planning.

✅ Path 3: Identity Reconstructionist (Higher Order Players)--Layout of Hong Kong status or overseas status

Keywords:Change of tax resident status

Now that's what I'm talking about.A true "systemic breakthrough"The

When you:

  • No longer a tax resident of China
  • Have a legal offshore tax status, such as Singaporean status.
  • Supporting Companies, Banks, Residential Facts

Then:

  • CRS no longer returns to Mainland China
  • Amazon no longer points to China's internal tax bureau, even if it cooperates

⚠️ But the cost of this path is:

  • timing
  • Long-term planning

It's not for everyone, but once it's done, it's a qualitative change.

Warm reminder: Hong Kong companies registered in mainland China status and stationed on Amazon or other offshore platforms will not be exchanged to the local tax office in China for the time being because they are Hong Kong companies.

But if there is a chance that the Hong Kong Inland Revenue Department found that you are a resident of mainland China, and the Hong Kong company has a lot of winnings, at present, according to the feedback of the seller, more than 5 million / year Hong Kong dollar profits of the Hong Kong company, Hong Kong will be CRS swap to back to the mainland. As for the future whether more than 1 million are exchanged? The future is possible, because at present, like Fidelity, Tiger and other U.S. stock platforms almost only have a profit are exchanged, and you do not pay there is a lagging gold, but also backwards.

So how do you avoid it altogether? There is a three-tier structure as follows:

(1) First find Enterprise Caiying Group to help apply for a Hong Kong identity, use your Hong Kong identity to register a Hong Kong company (can be non-permanent residence), and then go into the cross-border e-commerce platform.

(2) Current year's tax resident status is established in Hong Kong and a tax return has been filed in Hong Kong.

3) The center of gravity of family life is in Hong Kong.

Meeting the above conditions will not be subject to CRS by the Hong Kong Inland Revenue Department back to the Mainland.

Then some people will definitely say that Hong Kong is like this, how about other places? In fact, it is the same, as long as it is recognized that you are a tax resident of China, it is all a matter of being exchanged sooner or later.

To summarize, no matter you need corporate tax compliance services, or apply for Hong Kong status and Singapore status, or register a Hong Kong company, Enterprise Cai Ying Group can provide one-stop services.

07 What benefits can I enjoy under Hong Kong tax status?

Hong Kong's tax burden is almost the lowest in the world, so many high net worth individuals apply for Hong Kong status for this reason, so how low is the tax rate in Hong Kong? What are the advantages of the Hong Kong tax system?

① Enjoy a low tax regime when working or starting a business in Hong Kong

The low tax regime for Hong Kong residents can generally be enjoyed by working in Hong Kong or opening a company.

Working in Hong Kong: It is no secret that jobs in Hong Kong offer high salaries and low taxes. If you are an elite talent, the difference in the amount of tax paid between working in Hong Kong and working in the Mainland is huge, from an annual income of $500,000 to an annual income of $10 million, the difference in the amount of tax paid ranges from a few tens of thousands to a few million. For example, with an annual income of $1 million, the Mainland needs to pay $212,800 in tax, while Hong Kong only needs to pay $60,500 in tax, a difference of $152,300, and the higher the income, the bigger the difference.

Open a company in Hong Kong: and if you have a Hong Kong company, the amount of corporate tax required to be paid and the mainland company to pay the corporate income tax gap is even greater, Hong Kong involves corporate tax is mainly profits tax, the standard tax rate of 16.5%, the first 2 million profit tax rate of only 8.25%, personal income tax rate of 2% ~ 17%, the highest personal tax rate of only 17%. If your company's annual turnover is 10 million, and net profit is about 1.5 million (calculated at an annual rate of 15%), the amount of tax to be paid in Hong Kong is 123,800,000, while the amount of tax to be paid in the Mainland is about 675,000,000, which is a difference of more than 500,000 dollars.

② Double Taxation Avoidance Agreements:

Hong Kong has signed Double Taxation Avoidance Agreements (DTAs) with 49 tax jurisdictions to ensure that tax residents will not be subject to double taxation on their income in both jurisdictions and will be able to enjoy certain preferential tax rates. Example: A Hong Kong company receives a tax rate of 51 TP3T on dividend distribution sourced from the Mainland, and 71 TP3T on interest and royalties. If a Hong Kong company that does not fulfill the conditions of the agreement is subject to a general tax rate of 101 TP3T on all the above three items, and for a Mainland resident enterprise, the tax rate is 201 TP3T on all the above three items.

③ Tax incentives for Hong Kong business start-up policy:

The Hong Kong government introduces tax incentives and financial support policies every year. In the year of assessment 2024/25, Hong Kong enterprises can enjoy profits tax relief of 100%, capped at HK$1,500. In the year of assessment 2025-26, the maximum amount of profits tax relief will be increased from HK$1,500 to HK$10,000 (the specific percentage of relief is to be announced by the Legislative Council after scrutinizing the proposal). The tax deduction for R&D expenditure of qualified technology-based enterprises (companies incorporated or with their principal place of business in Hong Kong) will be increased to 1,50%, with priority given to areas such as biotechnology and artificial intelligence.

Example: If an enterprise invests HK$1,000,000 in R&D expenses, it can deduct HK$1,500,000 from its taxable profits, which directly reduces its tax burden.

④ Hong Kong investment income:

The tax saved can make money, no matter you are a personal income or business income, the amount of tax saved is not small, if the money saved is used for investment, such as buying a property in Hong Kong, doing a small business, etc., the return on investment is not low.

Moreover, the more tax saved by Hong Kong residents, the more willing these talents are to make investments and spend money to boost the local economy. Hong Kong is China, and with better economic development, Hong Kong will contribute more to the country.

Assuming that you save tax by taking a Hong Kong identity, employment or entrepreneurship in Hong Kong is 300,000, with this 300,000 to make investments in the principal, do a small business and so on, according to the reinvestment of the annualized return of 3.5% to calculate the 1 year time can earn back 10,500,000, 10 years will be able to earn back 642,600,000, 30 years can earn back 7,028,800,000. What if the annual rate of return is a bit higher? For example, 6%, then earn back even more money, may be 10 years later, 20 years later, 30 years later you can rely on this amount of tax savings alone to invest to earn back hundreds or tens of millions of dollars.

If you have not yet applied for Hong Kong identity but have plans to do so, you can call or WeChat: 13045886252 to assess whether you can apply for the High Talent Pass Scheme/other talent policies ↓↓↓

08 How to Achieve Business Overseas and Tax Compliance by Incorporating a Hong Kong Company

Hong Kong companies can directly with overseas customers for business negotiations and cooperation, for enterprise product development and market expansion to provide strong support, the following look at the Hong Kong company and real business how to build? Expand your business to Hong Kong, configure overseas assets through Hong Kong, first need to register a Hong Kong company, the following three steps to build a Hong Kong company and overseas business.

Step 1: Hong Kong Company Structure Setup

Before transferring the business, the enterprise should determine the suitable company structure and complete the registration of Hong Kong company. The requirements and process of registering a Hong Kong company are very simple and it only takes 2-8 days to register, if you have already registered, you need to make a good business registration, open a bank card, carry out an annual review at regular intervals, and make a good audit of the tax return and other matters. Getting certificate: After successful registration, you will get the certificate of incorporation and business registration certificate. After getting the business registration certificate, you don't need to submit a separate "tax registration application" to the tax office, the "business registration number" on the business registration certificate will be synchronized as the company's tax number, and the tax office will automatically set up a tax file for the company, and you can directly use the number to file a tax return in the future. The tax file will be created for the company automatically by the tax office and the company will use this number to file tax returns directly.

Step 2: Make an ODI filing

Mainland enterprises to register a company in Hong Kong, if the outbound capital is too large, usually should be ODI filing before registering a company in Hong Kong, ODI filing process is as follows: the enterprise to the local development and reform department to submit a filing application, to obtain the "notification of filing of overseas investment projects"; with the development and reform of filing documents, to the business sector to submit an application to obtain the "certificate of overseas investment of enterprises"; after completing the above two, to the bank to apply for the After completing the above two items, the enterprise should go to the bank for foreign exchange registration and obtain the ODI business registration certificate.

Step 3: Hong Kong companies need to be continuously compliant

After the registration of a Hong Kong company is completed, if you need to operate in the field, you need to open a bank account, conduct an annual review, audit and tax returns, recruit employees and pay MPF contributions.

Step 4: Building the commercial substance of the Hong Kong company

If you do cross-border e-commerce in Hong Kong, if you want to reasonably enjoy the tax advantages and some tax reduction policies, it is indispensable to tax resident assessment, and enterprises applying for a certificate of Hong Kong tax residency must be required to prove that the company operates substantially in Hong Kong, generally from the judgment of whether or not there is a real business activity, substantial office space, recruitment of local employees in Hong Kong and the payment of MPF contributions, and to make a tax declaration (profits tax, salaries tax), and so on. The company must be able to prove that it has substantial business activities in Hong Kong.

Hong Kong is an important bridge connecting the mainland and the international market. Through a compliant structure, reasonable tax planning and sound capital management, mainland enterprises can not only successfully complete the transfer of business to Hong Kong, but also use it to move towards a broader international market. Moreover, by opening a Hong Kong company to do business, it can assist in the renewal of Hong Kong status, high flexibility can not be subject to the limitations of the duration of the employer's contract, can be in full control of the company's operations, can be used to open up / take care of the mainland business to stay in the mainland on the grounds that do not need to be in Hong Kong for a long period of time, but also to provide a reasonable explanation.

If you have not yet applied for Hong Kong identity but have plans to do so, you can call or WeChat: 13045886252 to assess whether you can apply for the High Talent Pass Scheme/other talent policies ↓↓↓

09  Why choose Enterprise Caiying Group?

🏆 Why choose Enterprise Finance? --Professional strength, global trust

Enterprise Caiying Group, since its establishment in 2015, has always been adhering to the mission of "empowering every entrepreneurial dream", focusing on providing one-stop globalized industry, commerce, finance and tax and business services for enterprises.

Our bottom line, from the deep precipitation and authoritative certification:

✅ Service Scale Witnesses Reputation: Accumulated services for more than 300,000+ enterprises, long-term cooperation with more than 50,000+ customers.

✅ Global Network Local Support: Branches are set up in Beijing, Guangzhou, Shenzhen, Hong Kong, Southeast Asia, and the United States, with services covering Asia, Europe, and the Americas.

✅ Official certification qualification escort: with 3 Hong Kong government certified licensed secretarial firms, a U.S. branch and a self-employed Hong Kong accounting firm, and at the same time is the vice president of the Shenzhen Agency Bookkeeping Association, etc., to ensure that the service is fully compliant and reliable.

The four core advantages of Enterprise Caiying's overseas company registration service:

🔹 1. A team of experts to guide you throughout the process

Our team of nearly 400 professionals consists of senior lawyers, accountants, tax accountants and cross-border business consultants. They are well versed in international regulations, handle thousands of high-end cases annually, and can provide optimal customized solutions from structural design to on-the-ground implementation.

🔹 2. digitally empowered, smart and efficient

We have spent 20 million RMB to research and develop our own digital system "Echobo", which realizes process standardization and progress visualization. The integration of AI intelligent analysis can provide quick insight into demand and assist in generating solutions, making complex affairs clear, transparent and efficient.

🔹 3. Eco-links, extra value

We connect over 500,000+ entrepreneurs with domestic and international associations. By regularly organizing cross-border salons, tax law seminars and other activities, we not only solve registration problems, but are also committed to linking resources and creating business opportunities for you.

🔹 4. Full-cycle accompaniment for worry-free sailing

Our services go beyond "successful registration". We provide a full life cycle of services from early consultation, mid-term implementation, to late financial and tax declaration, annual audit and maintenance, and compliance consulting, to become your long-term and stable partner for overseas expansion.

statement denying or limiting responsibility

Image source: some of the image material in this article from the network, such as copyright issues, please contact us to replace the deletion of processing.

Information reference: The content of this article is synthesized from the internal materials of Enterprise Caiying and relevant public network information.

Content Editor: This article was edited and designed by the Operations Department of the Enterprise Caiying Group.

Warm reminder: The relevant policies, conditions, time limits, fees and other information described in this article may be subject to dynamic adjustments, please refer to the latest official announcements or the actual application of the specific circumstances prevail.

Tags:
  • Corporate Tax Compliance
  • Hong Kong Identity Application
  • Tax Compliance
  • Hong Kong Identity
  • Hong Kong company
  • Register Hong Kong Company