Statistics Iceland

Business Register & EGR

Borgartún 21a

105 Reykjavik

Iceland

The EuroGroups register (EGR) is the statistical business register of Eurostat and the EU Member States and European Free Trade Association (EFTA) countries for multinational enterprise groups. The purpose of the EGR is to offer to statistical users a tool for coordinating frame population, to derive consistent statistical output with an improved quality in measuring global activities of European enterprises part of multinational enterprise groups.

The EGR produces data in yearly cycles and covers microdata on the groups and their enterprises and legal units. The EGR aims to register all multinational enterprise groups that have enterprises in EU Member States or EFTA countries, including European and non-European groups.

The Member States, EFTA countries and Eurostat exchange data on multinational enterprise groups and on the units belonging to those groups for the purposes of the European framework for statistical business registers to ensure the quality of the multinational enterprise group’s information in the Union.

The EGR brings together microdata on multinational enterprise groups from the EU and the EFTA countries' national statistical institutes, in line with the requirements of the Regulation (EU) No 2152/2019, and from a commercial data source for data outside the EU and EFTA.

Classification systems and main code lists used in the EGR are as follows:

• Statistical classification of economic activities in the European Community (NACE Rev. 2);
• European System of Accounts (ESA 2010);
• List of 2-digit country codes (ISO 3166-1);
• List of legal forms of the legal units;
• Currency codes (ISO 4217).

The coverage of the data transmitted to the EGR is defined in the Regulation (EU) 2019/2152 on European business statistics.

For the purposes of the European framework for statistical business registers, the following economic activities are considered:

• any activity comprising the offer of goods and services on a given market;
• non-market services contributing to the GDP;
• direct and indirect holdings of active legal units.

Holding assets and/or liabilities are also considered an economic activity.

Global group head

The global group head (GGH) of an enterprise group is the parent legal unit that is not controlled either directly or indirectly by any other legal unit. The subsidiary legal units of a subsidiary legal unit are considered to be subsidiaries of the parent legal unit.

Global decision centre

The global decision centre (GDC) of an enterprise group is the unit where the enterprise group level’s strategic decisions are taken. A group may have several decision-making centres or several units dedicated to a particular internal function, for example accounting or human resources. However, the decisions about the group are made only in the GDC. The GDC may be the GGH or another legal unit under the GGH.

Ultimate Controlling Institutional unit

The ultimate controlling institutional unit (UCI) of a foreign affiliate means the institutional unit higher up a foreign affiliate’s chain of control that is not controlled by another institutional unit.

Activity of unit

A statistical unit is considered to have been active during the reference period, if in said period it either realized positive net turnover or produced outputs or had employees or performed investments.

Number of employees

The number of employees represents the average number of persons who were, at some time during the reference period, employees of the statistical unit.

Number of employees and self -employed persons

The number of employees and self-employed persons is the sum of the Number of employees and Number of self-employed persons. The number of self-employed persons is the average number of persons who were at some time during the reference period the sole owners or joint owners of the statistical unit in which they work. Family workers and outworkers whose income is a function of the value of the outputs of the statistical unit are also included. 

Net turnover

For all activities except for NACE 64, 65 and some activities of NACE 66 net turnover consists of all income arising during the reference period in the course of ordinary activities of the statistical unit, and is presented net of all price reductions, discounts and rebates granted by it.

Total assets

As per tax Corporate tax returns.

Principal activity

The statistical units maintained in the EGR are defined in accordance with the Regulation (EEC) No 696/93 on the statistical units for the observation and analysis of the production system in the Community.

The EGR frame contains the following units: Legal units, Enterprises and Multinational enterprise groups.

Legal units include:

- legal persons whose existence is recognized by law independently of the individuals or institutions which may own them or are members of them,

- natural persons who are engaged in an economic activity in their own right.

The legal unit always forms, either by itself or sometimes in combination with other legal units, the legal basis for the statistical unit known as the 'enterprise'.

Enterprise

The enterprise is the smallest combination of legal units that is an organizational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. An enterprise may be a sole legal unit.

Multinational enterprise group

A multinational enterprise group is an enterprise group that has at least two enterprises or legal units located in different countries.  In business statistics also term ‘global enterprise group’ is used.

The data transmitted to the EGR during the cycle is made of the following datasets.

The data set with information on all incorporated resident legal units for the EGR Identification Service.

ISRLE file includes all incorporated resident legal units is sent to EGR for identification.

The data set with information on foreign legal units for the EGR Identification Service.

ISNORLE file including full population of foreign legal unit recorded in national statistical business register is sent to EGR for identification.

The data set with information on legal units.

LEU file including all resident legal unit belonging to a global enterprise group is sent to EGR for processing.

The data set with information on relationships of ownership and control.

REL file including all relationships between legal units is sent to EGR for processing:

• two resident legal units
• one resident and one foreign legal unit

Relationships in the REL are:

• control relationships (>50%)

The data set with information on enterprises.

ENT file including all enterprises (legal unit) sent in LEU files is sent to EGR for processing.

The Data set with information on links between enterprises and legal units.

LEL file including all links between enterprise (ENT) and legal units (LEU) is sent to EGR for processing.

The Data set with information on enterprise groups of which country is the GDC country for the EuroGroups Register is reviewed by NSI after receiving the preliminary frame.

The reference area for the EGR is the territory of the country. Concerning enterprise groups any country outside the national territory may be relevant.

The EGR frames are available from reference year 2008 onwards. NSI transmits data for the EGR production cycle since year 2017.

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The economic variables on employment are recorded in absolute figures.

The net turnover for enterprises is recorded in icelandic currency.

The net turnover and net total asset is recorded in millions in icelandic currency.

The reference period for data sent to the EGR reflects the picture of 31 December of the given reference year.

Data transmitted to EGR during the EGR 2022 cycle includes data for the 2022 reference year. The identification, economic variables (number of employees, turnover and economic activity) refer to the 2022 reference year.

The content of the national data sent to EGR is defined according the Regulation (EU) 2019/2152 on European business statistics.

Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 is laying down the technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics.

The legal framework setting up the procedures for EGR data exchanges and access to confidential data for the purpose of the European framework for statistical business registers are defined in the Regulation (EU) 2019/2152 on European business statistics (Art.10). 

European legislation:

• Regulation (EC) No 223/2009 on European statistics;
• Regulation (EU) 2019/2152 on European business statistics (Art.10).

The national legislative measures or other formal procedures which prevent unauthorised disclosure of data that identify a person or economic entity either directly or indirectly include:

• Act on Statistics Iceland and official statistics
• Rules of Procedure for Treating Confidential Data

EGR data are stored by the Commission (Eurostat) and by the national statistical authorities (NSAs) in the EU Member States and EFTA countries in a secure area with restricted and controlled access.

The transmission of the EGR data is done in an encrypted form and by electronic means via the Commission (Eurostat) single entry point for exchange of confidential data EDAMIS.

Rules applied for treating the data set to ensure statistical confidentiality and prevent unauthorised disclosure are defined according to the policy rules (see section 7.1).

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The micro-data exchange of confidential data on multinational enterprise groups and on the statistical units belonging to those groups takes place, exclusively for statistical purposes, between EU Member States and EFTA countries and the European Commission (Eurostat).

Where such exchange of confidential data is carried out to ensure the quality of the multinational enterprise groups information in the Union and the exchange is explicitly authorised by the competent NSA which provides the data, national central banks may be party to the exchange of confidential data, exclusively for statistical purposes.

At national level the Act on Statistics Iceland and official statistics does not allow data sharing and data exchange between national authorities at microdata level.

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• EuroGroups Register communication space ( EGR wiki with restricted access)
• European business statistics methodological manual for statistical business registers – edition 2021

https://www.statice.is/about-statistics-iceland/statistics-iceland-policies/quality-and-security-policy/ 

Eurostat Data Quality Programme monitors the quality and compliance of the data transmitted by the countries to EGR using the instruments of the EBS quality framework.

At national level, the quality of the data sent to EGR is assured as follows by applying the following quality management and assurance procedures: 

• The SBR is based on admin data.
• An in-house working group focusing on the quality (NACE code and Institutional Sector) issues in statistics is in place and the Business Register has a representative in the group
• Changes in NACE code from Tax Autorities is reviewed before entering the BR by Statistics Iceland for all Legal Units with Turnover above certain limit. 

The quality of statistical business register is monitored according the quality assurance procedure described in concept 11.1. 

The overall assessment results could be summarised as follows:

• Strengths are the good coverage and quality of administrative data. Inhouse co-operation between business register, SBS, STS and BD  is an asset as well as internal co-operation regarding the classifications (NACE, SNA). After a large revision project 2015, the Business Register is situated in an integrated system with all the relevant businsess statistics sharing the unit structures, classifications and relevant concepts, which has resulted in elimination of overlapping work phases and enabled more coherent statistical outputs.
• New BR in 2015

Information on multinational enterprise groups are used for statistics related to globalisation in the EU Member States and EFTA countries

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The actions taken to monitor and to improve accuracy of the data sent to EGR are the following: 

• Use of administrative data
• Use of annual reports

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The EGR process refers to a reference year T and is run yearly over a period of 11 months, between May T+1 and March T+2.

On time

The geographical comparability of national statistical business registers is ensured by the application of common definitions of the statistical units laid down in the Council Regulation (EEC) No 696/93.

The SBR variables are harmonised and set up in accordance with the Annex VIII to the Commission Implementing Regulation (EU) 2020/1197 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 on European business statistics. Further guidelines on the variables implementation in the national statistical business registers are given in the EBS methodological manual for Statistical Business Registers (2021 edition).

• Iceland is one region.
• There is reliance on the administrative sources, which are provided on a legal unit level. The legal unit also gives a solid approximation of the enterprise. 

Coherence of data sent to Eurostat with other data sources and statistical domains:

• The NSBR frame provides information on the active population of enterprises carrying out economic activities which contribute to the gross domestic product (GDP), the legal units of which those enterprises consist of and enterprise groups, incl. all-resident and multinational enterprise groups.
• The national statistical business register is used by statistical users as a coordinated frame population in order to derive consistent statistical output.

Lack of coherence with other statistical domains can only be explained with difference in population.

Data sent to EGR should be internally consistent. There is a set of standard quality checks that are routinely perform at national level before transmitting the data to Eurostat:

Non-coherence between different data sources is checked and edited within the production processes and should not exist in the final frame.

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National data sent to EGR annually

Data sent to EGR are collected from:

• National Statistical business registers
• Administrative data sources.
• Annual Reports.

Statistical analysis of the national statistical business register is carried out to ensure the quality of data and frame populations provided to users.

Data validation procedures include:

• Format and file structure checks
• Intra-file checks
  • Missing information in the file e.g. "NULL". Grouping by Legal Form, NACE code or Institutional Unit to spot inconsistensies in classifications.
• Intra-domain, intra-source checks (e.g time series checks)
• Intra-domain, inter-source checks (e.g. mirror checks)
• Plausibility/consistency checks between domains inside the NSI

  • VAT data vs. VAT data of the revenue (SBS data ,Tax statement)

  • Persons Employed vs. HeadCount data (Pay as you earn) vs. FTE (SBS data, Tax statement)

• Manual Validation of NACE and Institutional Units

The procedures used to combine data from different sources:

• SQL. All Admin data is connected by an national ID.

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