Under the 2025 Amazon tax changes, where is the "new safe haven" for cross-border sellers?

In October 2025, Amazon's new rule for bulk reporting of Chinese seller information to the IRS came into effect, requiring mainland companies' tax information to penetrate to individuals, and global site revenues could be synchronized to the Chinese tax system. This change has caused many cross-border sellers to re-plan their company registration paths. In this "tax adaptation war", Hong Kong companies have become a short-term choice for many people due to their increased approval rate and relatively familiar procedures, but in the long run, Dubai is quietly becoming the "new favorite" of smart sellers ".

01 Compliance anxiety of cross-border sellers under the New Deal

in the past, some cross-border sellers tried to seek "flexible space" in tax declaration through the main structure of self-employed and mainland companies ". But Amazon's new rules for reporting tax information have gradually disappeared this "fuzzy zone. The need for mainland companies to penetrate individual shareholders means that personal income may face more transparent tax regulation, with compliance costs and potential risks rising.

In this context, Hong Kong companies have become a "transitional choice" for many sellers due to their geographical and cultural proximity to the mainland-data shows that after the new regulations, the number of Hong Kong companies entering cross-border e-commerce platforms has soared by 186 month-on-month, and the audit pass rate is also higher than that of mainland companies. But Hong Kong is not a perfect solution: although it has certain tax advantages, its tax rate is still higher than that of parts of the Middle East, and it has no obvious advantage over Dubai in terms of cross-border logistics and freedom of capital flow.

The Dubai company, with the UAE's unique tax policy and geographical location, has become a more potential "long-term safe haven". It is not a simple "tax alternative", but a more efficient and low-cost global business operation platform for cross-border sellers.

02 Core Advantages of Dubai Company

the choice of Dubai company is not just a label of "low tax rate. Its advantage is multi-dimensional, from the tax, capital, logistics, operations four levels, for cross-border sellers to solve the actual pain points.

1. Tax

enterprises in the Dubai Free Trade Zone, overseas income and internal transactions in the free trade zone can enjoy the policy of exemption from corporate income tax, and the tax exemption period of some free trade zones is as long as 50 years. Only when the current year's income exceeds 3 million dirhams (about 6 million yuan), the income tax rate is 9%, which is much lower than that of most countries and regions.

More crucially, the UAE has no personal income tax, whether on wages, dividends or capital gains. For sellers, this means a double reduction in business operating costs and personal income tax burden, and a significant increase in profit margins.

2-Capital

one of the core demands of cross-border sellers is that funds can be remitted freely and allocated globally. Dubai allows 100 per cent foreign ownership, requires no local partners and has no foreign exchange controls. Whether it is to remit profits back to China, or to allocate funds to markets such as Europe and Southeast Asia, "barrier-free flow" can be achieved ".

3. Logistics

located at the intersection of Asia, Europe and Africa, it takes about 7 hours to fly to London, 3 hours to Mumbai and 8 hours to Shanghai from Dubai. The goods can quickly cover the core markets of the Middle East, Europe and Southeast Asia. In addition, Dubai has the world's densest aviation network (annual passenger throughput exceeds 90 million), the largest deep-water port in the Middle East (Jebel Ali Port), and an intelligent logistics system, cross-border sellers can establish an "overseas warehouse center" here, Realize localized sales and rapid distribution, greatly improve the user's shopping experience, and reduce logistics costs and transportation time.

4. Operation

the registration and compliance requirements for Dubai companies are more transparent and efficient. Sellers can choose a free zone company (FZCO, suitable for cross-border e-commerce and trade), a local company (LLC, suitable for local market business) or an offshore company (for asset protection) based on their business needs. Free zone companies do not need to pay in registered capital, and can use a virtual address, the registration process usually only takes 3-20 working days. Subsequent bank account opening, tax registration (for example, 5% VAT is required for annual turnover exceeding 375000 dirhams) and other links are also supported by mature intermediary agencies, greatly lowering the operating threshold.

03 Independent Address in Amazon

‍‍‍‍Although the advantages of Dubai companies are obvious, there is a core key point to successfully enter cross-border e-commerce platforms such as Amazon: they must provide a real and independent business address.

When the platform is audited, it will not accept the address or mailbox of the affiliated secretary, but will require to provide:

● Office Lease Contract

● Real business vouchers such as water and electricity bills in the past three months. We can provide you with independent address services, provide sellers with independent office addresses that meet the requirements of the platform, and solve the "hard threshold" for entry review ". With this real address, sellers can successfully open Amazon stores with Dubai as the main company and enjoy the tax and logistics advantages of Dubai.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!