Foreign-Controlled Domestic Corporations, 1998 - Brief Article - Statistical Data Included

Statistics of Income Bulletin, Summer, 2001 by James R. Hobbs

Foreign-Controlled Domestic Corporations (FCDC's) reported $1.9 trillion of total receipts for 1998, which accounted for 10.9 percent of the receipts reported on all U.S. corporation income tax returns. Two industrial groupings accounted for 77.4 percent of the $1.9 trillion of receipts: goods production ($0.9 trillion) and the distribution and transportation of goods ($0.6 trillion).

From a country perspective, domestic corporations controlled by persons resident in Japan produced 23.7 percent of the total FCDC receipts, followed by Germany (14.2 percent), the United Kingdom (12.9 percent), and the Netherlands (10.8 percent). The collective net income (less deficit) reported by the 61,658 FCDC's was $40.6 billion, a decline of nearly one-fourth from the $52.4 billion for 1997. Total U.S. income tax after credits of FCDC's was $18.3 billion, a decrease of 7.4 percent from that of the prior year. For 1998, the 2,956 "largest" companies accounted for 91.9 percent of the receipts for all FCDC's. In comparing these large companies to large domestically-controlled corporations on the bases of age and industry, the ratio of net income (less deficit) compared to total receipts, was smaller for the FCDC's in most cases.