Today's article explains it all: Why does Amazon need to report offshore subject data? Which sellers will be affected? And most importantly - what you should be doing now to be compliant and not step in the hole.<\/p>\n\n\n\n
First, Amazon tax data reporting, what's really going on<\/h2>\n\n\n\n
Let's get the background straight. in 2024, China issued Decree 810, which required e-commerce platforms to report sellers' tax-related data to tax authorities. This policy was initially focused on domestic subjects, but by the fourth quarter of 2025, the reporting was expanded to include offshore subjects such as Hong Kong and U.S. companies.<\/p>\n\n\n\n
Many sellers previously registered Hong Kong companies or U.S. companies to achieve tax optimization through offshore structures. But now that Amazon reports data directly to Chinese tax authorities, does this idea still work?<\/p>\n\n\n\n
The answer is: the structure itself is fine, but compliance filings must follow.<\/strong><\/p>\n\n\n\n There is a core concept to understand here: substance over form. China's tax authorities determine whether you are a tax resident of China not by where you use a company to register your store, but by where the actual controller and actual place of business is.<\/p>\n\n\n\n Simply put: If you have a Hong Kong company or a U.S. company where the actual controller is a resident of mainland China and the actual operating team is in China, then even if the company is registered outside of China, the Chinese tax authorities still have jurisdiction.<\/p>\n\n\n\n This is why many sellers have received tax data reporting notices even though they are obviously using Hong Kong or US companies.<\/p>\n\n\n\n Many sellers are concerned: what exactly does Amazon report? Will it report all my revenue? Based on what we know so far, the data reported by Amazon includes:<\/p>\n\n\n\n Store base information:<\/strong>Store name, registered body, taxpayer identification number (if any)<\/p>\n\n\n\n Transaction data:<\/strong>Order level sales revenue, refund amount, actual amount on hand<\/p>\n\n\n\n Platform fees:<\/strong>FBA delivery fees, advertising fees, commissions, warehousing fees and all other platform deductions<\/p>\n\n\n\n Payback data:<\/strong>The actual flow of funds to your account<\/p>\n\n\n\n Note one detail: the reporting for Q4 2025 is more granular than Q3.<\/strong>Q3 may just be aggregated data, but Q4 has been broken down to the order level, where every transaction and every expense is clear. This means that the dimension of data held by the tax authorities has been sufficient to restore the real business situation of your store.<\/p>\n\n\n\n If you have any questions, please feel free to ask customer service (WeChat: qcygscszk, Mobile: 18676749275<\/strong>).<\/strong><\/p>\n\n\n\n If you are in one of these categories, it is advisable to check yourself immediately:<\/p>\n\n\n\n Although Hong Kong companies have a low tax rate, the Chinese tax authorities can still require you to file a tax return if your beneficial owner is a resident of mainland China and does not have substantial operations in Hong Kong.<\/p>\n\n\n\n The situation with US companies is a bit more complicated. If you are a Chinese tax resident and use a US company for Amazon, you theoretically need to consider both the US tax return and the Chinese tax return. You need to be compliant on both sides, you can't just focus on one end.<\/p>\n\n\n\n This type of seller is most likely to be reported. Because the Amazon system may still retain your earliest domestic registration information, even if you later switched to a Hong Kong company or a U.S. company, the historical data may still be associated with the report.<\/p>\n\n\n\n This is a typical case of separation of \u201dplace of substantial business\u201d and \u201dplace of registration\u201d. When determining the tax liability, the tax authority will focus on where the actual place of business is, not just where the company is registered.<\/p>\n\n\n\n If you have received a notification, don't panic and follow these steps:<\/p>\n\n\n\n Step 1: Confirmation of the subject of the report<\/strong><\/p>\n\n\n\n Look at the notice to see which subject is being reported. Is it your Hong Kong company, your U.S. company, or an earlier domestic subject? Different subjects are handled differently.<\/p>\n\n\n\n Step 2: Download and check the data<\/strong><\/p>\n\n\n\n Log into your Amazon back office and download the tax data report for Q4 2025. Double-check every income and expense for accuracy. If you find the data is wrong, contact Amazon customer service in time to appeal for correction.<\/p>\n\n\n\n Step 3: Sort out your tax filing obligations<\/strong><\/p>\n\n\n\n Determine where you need to file your tax return based on your actual situation:<\/p>\n\n\n\n Step 4: Create a compliant financial ledger<\/strong><\/p>\n\n\n\n From now on, every income, every cost and expense must be documented. Amazon statements, bank runs, invoices, all kept for inspection.<\/p>\n\n\n\n Step 5: Consider the need for restructuring<\/strong><\/p>\n\n\n\n If your existing structure does have compliance risks, you can consider adjusting it. However, the structure adjustment involves a series of matters such as company registration, bank account opening, tax registration, etc. It is recommended to find a professional team to assess the situation before operation, and not to change blindly.<\/p>\n\n\n\n If you have any questions, please feel free to ask customer service (WeChat: qcygscszk, Mobile: 18676749275<\/strong>).<\/strong><\/p>\n\n\n\n Even if you haven't received a tax data filing notice yet, it doesn't mean you can rest on your laurels. Amazon's filing is done in batches, and just because it's not your turn today doesn't mean it won't be tomorrow. Prepare for the following in advance so you can handle it with ease:<\/p>\n\n\n\n Improve your financial records<\/strong><\/p>\n\n\n\n From now on, establish standardized financial ledgers. Income, costs, expenses, every single one of them should be supported by vouchers. Don't wait until the tax authorities come to investigate, only to realize that you don't have any information.<\/p>\n\n\n\n Sorting out your company structure<\/strong><\/p>\n\n\n\n Know exactly what entity you are currently using, who the beneficial owner is, and where your actual place of business is. This information determines where your tax filing obligations lie.<\/p>\n\n\n\n Understanding your tax filing obligations<\/strong><\/p>\n\n\n\n According to your company structure and actual business situation, figure out where you need to file tax returns. What do you need to file for a Hong Kong company, what do you need to file for a U.S. company, what do you need to file for an individual in China, all sorted out.<\/p>\n\n\n\n Setting aside compliance costs<\/strong><\/p>\n\n\n\n Compliance comes with a cost. Accountant fees, tax advisor fees, possible back taxes and late fees all need to be factored in ahead of time. Build the cost of compliance into your operating budget so you don't have your hands full when the time comes.<\/p>\n\n\n\n This is a major concern for many sellers. The answer is: it works, but it must be used in compliance.<\/p>\n\n\n\n There is nothing inherently wrong with Hong Kong and US dollar companies, they still have their unique advantages in international trade. But the point is that you can't just enjoy the benefits of the structure without the obligations of compliance.<\/p>\n\n\n\n If you use a Hong Kong company for Amazon, you have to do your books and file your taxes according to Hong Kong rules, and also according to Chinese rules if the Chinese tax authorities recognize you as a Chinese tax resident.<\/p>\n\n\n\n If you use a U.S. company for Amazon, you have to do your bookkeeping and tax filing according to U.S. rules, and consider your Chinese tax filing obligations.<\/p>\n\n\n\n Compliance is not a multiple choice question, it's a mandatory question.<\/strong><\/p>\n\n\n\n If you need to register a U.S. company \/ Hong Kong company, welcome to contact customer service (WeChat: qcygscszk, Mobile: 18676749275<\/strong><\/strong>).<\/strong><\/p>\n\n\n\n In talking to fellow sellers, I've noticed some common misconceptions about tax compliance, and I'm going to focus on clarifying them here:<\/p>\n\n\n\n Myth 1: Offshore companies don't need to pay tax to China<\/strong><\/p>\n\n\n\n This statement is wrong. If you are a tax resident of China, even if your company is registered outside of China, you still need to file a tax return to China for income earned from within China.<\/p>\n\n\n\n Myth 2: I can't file if Amazon doesn't report it<\/strong><\/p>\n\n\n\n Even if Amazon doesn't report your data for the time being, it doesn't mean you don't have a tax obligation. Tax reporting is a legal obligation, not a matter of whether the platform reports or not.<\/p>\n\n\n\n Myth 3: Changing the body of the company will solve the problem<\/strong><\/p>\n\n\n\n If you frequently change the body of your company just to avoid filing tax returns, not only will it not solve the problem, but it could lead to greater compliance risks. Tax authorities see this kind of operation very clearly.<\/p>\n\n\n\n Myth 4: Waiting for the tax authorities to come to you<\/strong><\/p>\n\n\n\n Waiting for the tax authorities to reach out to you often means that the problem is already more serious. By then, you could be facing back taxes, late fees, fines, and even an impact on your personal credit. Complying in advance costs far less than remedying after the fact.<\/p>\n\n\n\n Amazon tax data reporting is not the end, but a beginning. With the standardization of the cross-border e-commerce industry, tax compliance will become a problem that every seller must face. Those sellers who layout in advance and take the initiative to comply will have an advantage in the future competition; while those sellers who take a chance and delay their response may pay a bigger price.<\/p>\n\n\n\n Compliance is not a cost, it's an investment. An investment in the future of your business, an investment in your peace of mind.<\/strong><\/p>\n\n\n\n If, after reading this article, you're still not sure where your tax filing obligations lie, or you're not sure how to organize your company's structure and establish a compliant financial system, you can contact us.<\/p>\n\n\n\n Enterprise Caiying specializes in tax compliance services for overseas enterprises, we have helped hundreds of cross-border e-commerce sellers to complete the whole process of compliance building from company registration, bank account opening to tax declaration and fund return. We can help you:<\/p>\n\n\n\n Welcome to consult customer service<\/strong><\/p>\n\n\n\n \ud83d\udcf1 Cell phone:18676749275<\/strong><\/strong><\/p>\n\n\n\n \ud83d\udcac WeChat:qcygscszk<\/strong><\/strong><\/p>\n\n\n\n Scan the code or say \"Tax Compliance\" in a private message to arrange for a dedicated one-on-one communication.<\/p>\n\n\n\n Don't let tax issues be a stumbling block on your way to the sea. Act now before it's too late!<\/strong><\/p>\n\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" Recently, a lot of seller friends doing Amazon came to me and asked, \u201dMy store is registered with a Hong Kong company, why did I also receive a tax data reporting notice?\u201d \u201cIsn't it said that offshore subjects can avoid tax? How come even US companies are now reported to Chinese tax authorities?\u201d<\/p>\n If you have the same question, this article is a must-read.Starting in the fourth quarter of 2025, Amazon officially reported the tax-related data of Hong Kong subjects and U.S. subjects to China's tax authorities. This means that the era of tax compliance for Amazon with offshore companies has come. Today's article tells the whole story: why should Amazon report the data of overseas subjects? Which sellers will be affected? And most importantly - what you should do now to be compliant and not step in the pit.<\/p>","protected":false},"author":10,"featured_media":8746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,18,13,64],"tags":[533,154,51],"class_list":["post-8739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-allguide","category-recomguide","category-guide","category-gf-tax-compliance","tag-533","tag-154","tag-51"],"yoast_head":"\nSecond, why Hong Kong companies, U.S. companies will also be reported<\/h2>\n\n\n\n
Third, what data does Amazon actually report<\/h2>\n\n\n\n
![\"\"](\"https:\/\/qcyboss.oss-cn-shenzhen.aliyuncs.com\/wp-content\/uploads\/2026\/03\/20260323160847384.jpg\")
<\/figure>\n\n\n\nIV. Which sellers need special attention<\/h2>\n\n\n\n
Category 1: Sellers who register their Amazon store with a Hong Kong company<\/h3>\n\n\n\n
Category 2: Sellers who register their Amazon store with a US company<\/h3>\n\n\n\n
Category 3: Sellers who registered with domestic information in the early years and only later switched to foreign subjects<\/h3>\n\n\n\n
Category 4: Sellers whose stores are actually operated in China, but who use offshore companies to collect payments.<\/h3>\n\n\n\n
V. What to do when you receive a tax data submission notice<\/h2>\n\n\n\n
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<\/figure>\n\n\n\nSixth, has not received notice of the seller, what to do to prepare for<\/h2>\n\n\n\n
VII. Hong Kong and U.S. companies, can they still be used<\/h2>\n\n\n\n
<\/figure>\n\n\n\n![\"\"](\"https:\/\/qcyboss.oss-cn-shenzhen.aliyuncs.com\/wp-content\/uploads\/2026\/04\/20260403142834602-1024x585.png\")
<\/figure>\n\n\n\nVIII. A few common misconceptions about tax compliance<\/h2>\n\n\n\n
IX. In conclusion<\/h2>\n\n\n\n
About<\/h3>\n\n\n\n
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