diff --git a/Makefile b/Makefile
index 50a9f623b2..bba7d650ab 100644
--- a/Makefile
+++ b/Makefile
@@ -608,8 +608,8 @@ sdk: prepare-sdk $(BR2_TAR_HOST_DEPENDENCY)
 	$(Q)mkdir -p $(BINARIES_DIR)
 	$(TAR) czf "$(BINARIES_DIR)/$(BR2_SDK_PREFIX).tar.gz" \
 		--owner=0 --group=0 --numeric-owner \
-		--transform='s#^\.#$(BR2_SDK_PREFIX)#' \
-		-C $(HOST_DIR) "."
+		--transform='s#^$(patsubst /%,%,$(HOST_DIR))#$(BR2_SDK_PREFIX)#' \
+		-C / $(patsubst /%,%,$(HOST_DIR))
 
 RSYNC_VCS_EXCLUSIONS = \
 	--exclude .svn --exclude .git --exclude .hg --exclude .bzr \