Foreign Affiliates Statistics (FATS)

Compared to the total number of profit-oriented enterprises (NACE Rev.2 sections B-N plus division S95) resident in Austria, foreign controlled enterprises accounted for

• 3.3% in number,
• 21% in employment,
• 27% of total value added (at factor costs), and
• 34% of total turnover.

Foreign affiliates in Austria were mainly controlled by group heads resident in Germany (for 39% of the foreign controlled units), Switzerland (11%) and Italy (5.5%). The UK, the Netherlands, and the United States had a share of slightly more than 4% each.

On the other hand, Germany traditionally also is the main destination for the establishment of Austrian controlled units abroad. 14% of all foreign affiliates and 13% of the total employment in foreign units 2019 (more than 150 000 jobs) were located in the same-language neighboring country.

Beyond that, and as in the years before, Austrian enterprises (Austrian as well as foreign controlled ones) concentrated their activities abroad in the “new” member states of the EU, namely

• in the Czech Republic, where 9.0% of the total employment in Austrian affiliates abroad were counted,
• in Hungary and Romania with 6.4% and 6.1% of foreign employment, respectively,
• and in Poland (4.6%) and Slovakia (4.2%), the latter still counting for almost 50 000 jobs a year.

Outside the EU, the highest numbers of persons employed in Austrian controlled foreign enterprises in 2019 were found in the United States (5.4% of foreign employment), the Russian Federation (4.6% overall share), China (4.2%) and the Ukraine (2.6%).

In total, affiliates in EU countries counted for two thirds (66%) of all foreign units, other European countries for 14%, Asia for 10% and the Americas for 8.7%. Affiliates in Africa represented only 1.2% of foreign units; countries classified as offshore financial centers added up to 2.1% of the units and 1.0% of total foreign employment.

Trends 2018 – 2019

After all-over positive growth rates in 2018, 2019 gave a more mixed picture. While numbers for employment and turnover in domestic foreign affiliates, as well as turnover in affiliates abroad grew moderately, number of domestic affiliates and employment in foreign affiliates slightly (see table below). Number of foreign affiliates remained at 6 000 units. It is noteworthy that turnover of foreign affiliates abroad already reached a high level in 2018 (+12.8% in relation to 2017 figures) due to affiliates engaged in international oil and raw materials trading which are being reported by their Austrian controlling units.

Development of the foreign-controlled enterprises in Austria was slightly below average compared to the overall economic population (total employment in market sector businesses went up 1.9%, total turnover by 3.3%).

On the statistics

A main feature of national economies is the integration of their economic units with the rest of the world. This can be measured, amongst others, by the companies’ cross-border investments, be it by domestic enterprises’ investments abroad or vice versa. This phenomenon is tightly connected with the issue of (economic) globalisation and the out-sourcing and dislocation of productive resources (offshoring).

In 2007, a European Regulation on the structure and activity of foreign affiliates was adopted (Regulation (EC) No. 716/2007 of the European Parliament and the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates, published in OJ 2007 L 171/17), in order to establish a harmonized data collection system on this issue. In Austria, implementation of this European act has been enforced by a national regulation, the so-called “Auslandsunternehmenseinheitenstatistik-Verordnung” (Verordnung des Bundesministers für Wirtschaft und Arbeit über die Statistik der Struktur und Tätigkeit von Auslandsunternehmenseinheiten, BGBl. II Nr. 345/2008).

In former years, parts of the FATS statistics were produced by the Austrian Central Bank (OeNB). Starting with the reporting year of 2007, the first obligatory reporting year according to the European Regulation on FATS statistics, production of Austrian FATS data were taken over by Statistics Austria, in close cooperation with the National Bank. This holds true for both, the “inward” and “outward” direction of the statistics:

• Inward FATS: enterprises resident in Austria which are under the control of an institutional unit resident abroad;
• Outward FATS: enterprises resident abroad which are under the control of an institutional unit resident in Austria.

Control over a corporation here is defined as the ability to determine general corporate policy by choosing appropriate directors, if necessary. A single institutional unit (another corporation, a household or a government unit) secures control over a corporation by owning more than half the voting shares or otherwise controlling more than half the shareholders’ voting power. In addition, government secures control over a corporation as a result of special legislation decree or regulation which empowers the government to determine corporate policy or to appoint the directors. 
Foreign control is given when the controlling institutional unit is located in a different country that the institutional unit controlled by it. 
Within this concept, direct as well as indirect control structures are to be recognized. FATS statistics use the concept of the 'ultimate controlling institutional unit' (UCI). The UCI is the institutional unit (or natural person), proceeding up a chain of control, which is not controlled by another institutional unit. The land of control is the country in which the UCI has its residence.

In extension to European standards (data as published by Eurostat), national data on foreign affiliates abroad also include information on affiliates of Austrian enterprises that are under foreign control themselves.

In compliance with the European Regulation, the national Regulation provides for delivery of results of the FATS statistics to Eurostat within 20 months after the end of the reference year. This period respects the fact that Austrian FATS statistics, for reasons of reducing the respondents’ burden, mainly relies on the availability of other statistics. These are the annual Structural Business Statistics (SBS), the bi-annual data collection on research and development (R&D), and the annual Foreign Direct Investment (FDI) statistics. These data are combined by using crucial information from the national statistical Business Register.

Data dissemination normally is effected by beginning of October of the second year after the end of each reference year, starting with October 2009; only a few months after availability of the national SBS (and the bi-annual R&D) data.

More information

For more detailed information on the Austrian data please consult the tables and report (under “Further information”) below or our German language website.

For more information on international data please consult the Eurostat website on statistics on foreign-controlled enterprises.

Tables, reports, press releases, etc.