In Britain, corporations are required to pay 19 percent of their profits in tax. The government wants to lower this to a rate of 17 percent by 2020.
The Tax Justice Network, an anti-tax avoidance advocacy group based in the U.K., criticized the lower tax payment, calling it an "insult."
"It clearly shows that our global tax system is fundamentally broken and needs urgently fundamental reform," the organization told CNBC via email. "Otherwise, small and medium enterprises will be ruined at the expense of global players who are most aggressive in pushing down their tax rates and controlling ever more market share."
The activist group said large multinational firms should be forced to report their financial activities on a country-by-country basis.
A spokesperson for Amazon said in statement: "Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly-competitive, low margin business and our continued heavy investment."
Amazon has around 27,000 employees in the U.K and it grants full-time staffers share awards, which the company says reduce its tax liability. Amazon's share price has increased 84 percent in the past two years.
The news could embolden critics of Amazon who claim the firm and other tech giants are not paying enough tax. President Donald Trump for instance has attacked Amazon frequently, claiming the company pays "little or no taxes to state and local governments."