Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.
Foreign Affiliates Statistics (FATS) measure the commercial presence through affiliates in foreign markets.
Inward foreign affiliates statistics (IFATS) shall mean statistics describing the activity of foreign affiliates resident in the compiling country.
In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control.(Table 14 of the EBS Implementing Regulation (EU) 2020/1197).
Variables on the country-level business activities in the IFATS data category:
Business activities in foreign control:
210301. Number of foreign-controlled enterprises
220501. Number of employees and self-employed persons in foreign-controlled enterprises
220701. Employee benefits expense in foreign-controlled enterprises
230301. Intramural R & D expenditure in foreign-controlled enterprises
230401. R & D personnel in foreign-controlled enterprises
240301. Total purchases of goods and services of foreign-controlled enterprises
240302. Purchases of goods and services for resale of foreign-controlled enterprises
250601. Net turnover of foreign-controlled enterprises
250701. Value of output of foreign-controlled enterprises
260201. Foreign-controlled enterprises’ gross investment in tangible non-current assets
250801. Value added of foreign-controlled enterprises
Business activities in total economy:
210101. Number of active enterprises
220101. Number of employees and self-employed persons
220301. Employee benefits expense
230101. Intramural R & D expenditure
230201. R & D personnel
240101. Total purchases of goods and services
240102. Purchases of goods and services for resale
250101. Net turnover
250301. Value of output
250401. Value added
260101. Gross investment in tangible non-current assets
3.2. Classification system
Classification systems used in the FATS are as follows:
Statistical classification of economic activities in the European Community (NACE Rev. 2);
List of 2-digit country codes (ISO 3166-1);
Currency codes (ISO 4217).
3.3. Coverage - sector
For all variables except for variables Intramural R & D expenditure, Intramural R & D expenditure in foreign-controlled enterprises, R & D personnel and R & D personnel in foreign-controlled enterprises: Market producers of NACE Sections B to N and P to R and divisions S95 and S96;
For variables Intramural R & D expenditure, Intramural R & D expenditure in foreign-controlled enterprises, R & D personnel and R & D personnel in foreign-controlled enterprises: Market producers of NACE Sections B to F.
3.4. Statistical concepts and definitions
Foreign Affiliates Statistics (FATS) measure the commercial presence through affiliates in foreign markets.
Inward foreign affiliates statistics (IFATS) shall mean statistics describing the activity of foreign affiliates resident in the compiling country.
In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control.(Table 14 of the Implementing Regulation (EU) 2020/1197).
Ultimate Controlling Institutional of a foreign affiliate (UCI) shall mean the institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.
Control is the ability to determine the general policy of the affiliate by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders' voting power or more than half of the shares.
Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A.
Active enterprise is a statistical units which at any time during the reference period was ‘enterprise’, as defined in Regulation (EEC) No 696/93, and also active during the same reference period. 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.
Employees and self-employed persons are persons who work for an observation unit on the basis of a contract of employment and receives compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind; and persons who are 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.
Employee benefits expense contains all expenses arising in relation with employee benefits, recognized by the statistical unit during the reference period. Those are are all forms of consideration given by the statistical unit in exchange for service rendered by employees or for the termination of employment.
Research and experimental development (R & D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge. Expenditures on intramural R & D represent the amount of money spent on R & D that is performed within a reporting unit. Intramural R & D expenditures are all current expenditures plus gross fixed capital expenditures for R & D performed within a statistical unit during a specific reference period whatever the source of funds. R & D current expenditures include labour costs for internal R & D personnel and other current costs (costs for external R & D personnel, purchase of services.). Gross fixed capital expenditures for R & D include: acquisition of land, acquisition of buildings, acquisition of information and communication equipment, acquisition of transport equipment, acquisition of other machinery and equipment, acquisition of capitalised computer software, acquisition of other intellectual property products.
R & D personnel in a statistical unit include all persons engaged directly in R & D, whether employed by the statistical unit or external contributors fully integrated into the statistical unit’s R & D activities, as well as those providing direct services for the R & D activities (such as R & D managers, administrators, technicians and clerical staff).
Total purchases of goods and services contains all amount of goods and services purchased by the statistical unit, recognized in accounting as either current assets or expenses during the reference period.
Purchases of goods and services for resale in are purchases of goods for resale to third parties without further processing. It also includes purchases of services by ‘invoicing’ service companies, i.e. those whose turnover is composed not only of agency fees charged on a service transaction (as in the case of estate agents) but also the actual amount involved in the service transaction, e.g. transport purchases by travel agents.
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.
Value of output represents the value of the total output of the statistical unit, generated during the reference period.
Value added is a composite indicator of net operating income, adjusted for depreciation, amortization and employee benefits, all components being recognized as such by the statistical unit during the reference period.
Gross investment in tangible non-current assets includes all additions to tangible non-current assets, recognized as such by the statistical unit during the reference period, except any increases from revaluations or reversals of previously recognized impairment losses and from reclassifications (transfers) of other tangible non-current assets.
Special Purpose Entities (SPE): Information from the EGR is used when is available.
Equally shared control: When there is equally shared control take some steps to find out the final foreign unit that actually exercises control over the subsidiaries in Portugal, by researching and analysing the resident companies, we also visit the website and the annual reports of the subsidiaries, trying to find out the chain of control and the country of residence of the UCI whenever we can´t find the dominant controller we attribute the UCI D09 (Extra-EU (changing composition) not allocated) or Z12 (Equally-shared control of UCIs (ultimate controlling institutional units of a foreign affiliate) of more than one EU member state).
Multiple minority ownership: There are not considered minority ownership by a foreign company although we visit the website and the annual reports of the subsidiaries, trying to find out the chain of control and the country of residence of the UCI. Whenever we can´t find the dominant controller we attribute the UCI D09 (Extra-EU (changing composition) not allocated) or Z12 (Equally-shared control of UCIs (ultimate controlling institutional units of a foreign affiliate) of more than one EU member state).
3.5. Statistical unit
The statistical unit of FATS is the enterprise as defined in line with the Regulation (EEC) No 696/93 on the statistical units for the observation and analysis of the production system in the Community.
3.6. Statistical population
For all variables except for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to N and P to R and divisions S95 and S96;
For variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to F.
3.7. Reference area
Portugal
3.8. Coverage - Time
Data are available from 2003 till 2023.
In January 2018, it was produced series revision data 2010-2014 for IFATS statistics with the application of the 2010 European Accounts System which implied, amongst others, the need to distinguish holdings from head-offices.
The length of comparable time periods is the following: (1) 2003-2009; (2) 2010-2023.
3.9. Base period
Not applicable.
Number of enterprises and employment variables are recorded in absolute figures.
Monetary data of enterprises are recorded in thousands of euros.
Reference 2023.
6.1. Institutional Mandate - legal acts and other agreements
For reference years 1996-2006, data are collected under a gentlemen's agreement within the context of the development of Structural Business Statistics (SBS, Council Regulation No 58/97 concerning structural business statistics as amended by European Parliament and Council Regulation No 2056/2002). The definitions of the characteristics for which Inward FATS are collected are included in Commission Regulation No 2700/98 as amended by Commission Regulation No 1670/2003.
From reference year 2007 onwards, data are collected according to the FATS-Regulation which provides a legal basis for the data collection. Data are covered by the rules on confidential data in force in the EU.
The Statistical Confidentiality Policy of Statistics Portugal is based on the Constitution of the Portuguese Republic, Law 22/2008 of 13 May, which establishes the principles, rules, and structure of the National Statistical System, and in particular the Principle of Statistical Confidentiality.
7.2. Confidentiality - data treatment
IFATS data are produced for all Portuguese active enterprises included in SBS data (is a subset of the SBS population). According to the SBS specifications, primary confidentiality is flagged with “A” and secondary with “D”. The rule is that any cell with 1 or 2 enterprises shall be flagged with primary confidentiality (flag A). After that, one or more additional cells are flagged with “D” (secondary confidentiality) in order to protect the first ones set as confidential by the rule. Statistics Portugal does not follow the rules presented like dominance rule, threshold rule or P-percent rule. The variable Number of enterprises is always disclosed.
In Portugal confidentiality is applied using the software Tau-Argus, with which cells with the lowest turnover are the first to be chosen for secondary confidentiality.
Please see Table 7.2 in the Annex at the bottom.
8.1. Release calendar
Data is made publicly available 11 months after the end of the reference year (T+1) and should be submitted to Eurostat 20 months after the end of the reference year (T+2).
In line with the Community legal framework and the European Statistics Code of Practice, statistics Portugal disseminates national IFATS statistics on Official Portal Statistics Portugal website respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably.
The Dissemination Policy of Statistics Portugal lays down the fundamental principles governing the dissemination of official statistics, directly or indirectly produced under its responsibility. It should have as main reference the applicable principles of the National Statistical System: technical independence, statistical confidentiality, quality, and accessibility.
Annual for all variables except for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to N and P to R and divisions S95 and S96.
Biennial (every odd-numbered year) for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to F.
10.1. Dissemination format - News release
The inward FATS data is disseminated on Official Portal Statistics Portugal.
With regards to the reference year 2023, results were published Globalisation Statistics: Foreign Affiliates on 19 December 2024 in a press release available on Official Portal Statistics Portugal.
10.2. Dissemination format - Publications
Inward FATS data were published in a press release and not publication format.
10.3. Dissemination format - online database
There are numerous online databases available on the Statistics Portugal webpage, accessible through the link provided on Statistics Portugal - Web Portal , you need to select “Enterprises” theme and then “Foreign Affiliate".
The data in online databases are updated concurrently with the press releases.
10.3.1. Data tables - consultations
Not available.
10.4. Dissemination format - microdata access
In the field of IFATS, researchers can access anonymised microdata in a way that does not allow the identification of the company.
The academic community has special statistical requirements, notably for carrying out research work and preparing Masters and Doctoral theses.
In this context, Statistics Portugal has established a Protocol with the Ministry of Education and Science, with a view to making it easier for researchers to access the statistics they need to carryout their activity.
Before applying for credentials, consult the databases accessible under this protocol. The accreditation of researchers is only made for access to the databases available under this project. Free access to statistical micro-databases for research purposes is only possible for accredited researchers, in accordance with the Protocol established with Statistics Portugal.
10.5. Dissemination format - other
Data and metadata are transmitted to the Commission (Eurostat) in accordance with Regulation (EU) 2019/2152 in electronic format, using the data and metadata exchange standards specified by the Commission (Eurostat).
Internet address: Statistics Portugal Web Portal Users can submit specific requests for data from the Statistics Portugal website.
10.5.1. Metadata - consultations
Not available.
10.6. Documentation on methodology
To enhance user understanding, concise explanations of the definitions of key concepts and methodological details are included at the end of press releases. In cases where further clarification or detailed explanation is warranted, additional supporting information is made available to users on request. In addition,comprehensive methodological notes are systematically published in the Metadata System.
10.6.1. Metadata completeness - rate
Not available at moment.
10.6.2. Availability of statistical metadata
Statistical metadata inward FATS are available on the website in Official Portal Statistics Portugal.
10.6.3. Web links if metadata are published electronically
SP is part of the European Statistical System (ESS) and has adopted the European Statistics Code of Practice– the Code – as firm guidance for the success of its mission. Since its last revision (November 2017), the Code comprises the Quality Declaration of the European Statistical System,16 Principles and 84 indicators of best practices and standards for each of the principles, defining the European benchmarks for the statistical activity, covering the institutional environment, statistical processes and statistical outputs.
The inward FATS data is compared with previous year's data and checked for any large changes in the data. When is available the data is checked with EGR sources, website or annual report for confirmation.
12.1. Relevance - User Needs
Users of inward FATS are: European Commission services, international organisations, ministries, chambers of commerce, trade unions, journalists, researchers etc.
Have had some requests from internal (e.g. International trade statistics) and external users (e.g. Ministry of Economy and Researchers) in what concerns the number of foreign enterprises in Portugal, by country of UCI and by economic activity.
12.2. Relevance - User Satisfaction
Not available.
12.3. Completeness
Overall 100% of the data required by the EBS Regulation was provided. All non-confidential data has been published.
12.3.1. Data completeness - rate
Please see Table 12.3.1 in the Annex at the bottom.
13.1. Accuracy - overall
Source to update the IFATS is Administrative annual Data provided by fiscal authorities, but to help and analyse information on view the relationships between legal units to confirm out the chain of control and country of residence of the UCI we use Data EuroGroups Register (EGR).
13.1.1. Use of residual geographic codes (Extra EU-27 not allocated, etc.)
Inward FATS 2022 data the residual geographics codes were not used.
Please see Table 13.1 in the Annex at the bottom.
13.1.2. UCI Approach applied to identify the relevant population of reporting units
The administrative Data provided by fiscal authorities used to compile Inward FATS statistics provides information about the country of the first foreign owner and in the majority of cases the first foreign owner is the UCI. When it is impossible to find out the country of UCI we allocate enterprises to the first foreign owner, when known or to the compiling country when no further information is available.
13.1.3. Update date (or frequency of updates) of the information regarding the country of the UCI by the “source administration”
Source to update the IFATS is Administrative annual Data provided by fiscal authorities in end of July. Don’t have problems with delays.
13.1.4. Description of other method used to improve the accuracy of the UCI
To help and analyse information on view the relationships between legal units to confirm out the chain of control and country of residence of the UCI we use Data EuroGroups Register (EGR).
13.2. Sampling error
Not applicable, as Statistics Portugal exclusively relies on administrative information.
13.2.1. Sampling error - indicators
Not applicable
13.3. Non-sampling error
The methods used to deal with unit non-response involve comparing information collected from administrative data with that from the Business Register. Since the submission of information is compulsory, no measures are applicable to minimise unit non-response. Statistics Portugal retains the authority to impose fines on entities failing to submit their Simplified Business Information declaration (IES).
13.3.1. Coverage error
Given that administrative sources are utilized for nearly all information and the non-response rate is minimal, Statistics Portugal asserts that the bias is very low. This implies that the bias has limited impact on the overall accuracy of the estimate.
13.3.1.1. Over-coverage - rate
Not applicable
13.3.1.2. Common units - proportion
In 2023, through a comparison between the Business Register and administrative data, approximately 500 non-responding units were identified in the administrative source. This represents approximately 4.6% of the total number of companies, 6.8% of employed persons, and 10.4% of turnover.
Compared to 2022, the turnover presents a high rate because the figures for all insurance and reinsurance companies were estimated. Insurance and reinsurance enterprises classified under NACE Rev.2 groups 651 and 652 have implemented a new accounting regime, in line with IFRS 17 - Insurance Contracts in Portugal, as well as the Chart of Accounts for Insurance Companies. This change applies to accounting periods starting on or after January 1, 2023. As a result, the data for these entities for 2023 reference year was not yet available when the 2023 FATS data were produced.
13.3.1.3. Misclassification errors
Not applicable
13.3.1.4. Under- and over-coverage problems
Not applicable
13.3.2. Measurement error
Not applicable
13.3.3. Non response error
Not applicable
13.3.3.1. Unit non-response - rate
See Table 13.3.3 in the Annex at the bottom.
13.3.3.2. Item non-response - rate
See Table 13.3.3 in the Annex at the bottom.
13.3.4. Processing error
Not applicable
13.3.5. Model assumption error
Not applicable
14.1. Timeliness
IFATS statistics are calculated annually for reference year T.
Data collection takes place at t+7 months after the end of the reference period.
Data dissemination at national level in press release takes place at t+11 months.
Data transmission to Eurostat takes place at t+20 months.
14.1.1. Time lag - first result
Data are released at national level within 11 months (T+1).
14.1.2. Time lag - final result
The reference year and the definitive data within 20 months (T+2).
14.2. Punctuality
Inward FATS dissemination were respected.
14.2.1. Punctuality - delivery and publication
Final data ought to be sent to Eurostat 20 months after the end of the reference period (T). Inward FATS data 2023 dissemination were respected and was sent in 19 months after the end of the reference period (T).
15.1. Comparability - geographical
Not applicable
15.1.1. Asymmetry for mirror flow statistics - coefficient
Not applicable
15.2. Comparability - over time
The length of the time series is 2003-2023.
15.2.1. Length of comparable time series
Length of comparable time series is as follows:
(1) 2003-2007; (2) 2008-2020; (3) 2021-2023.
15.2.2. Reasons and differences in concepts and measurement methods for breaks in time series
Inward FATS data are produced for all Portuguese active enterprises included in Structural Business Statistics (SBS) data (is a subset of the SBS population) and these are compiled by linking information on foreign control from Administrative Data provided by fiscal authorities and ownership with economic variables obtained in the SBS framework. The length of comparables time series is identical.
2003-2007, from 2003 to 2007 NACE Rev. 1.1 activity classification was used.
Starting from 2008 NACE Rev. 2 activity classification was implemented.
In addition to the main events, application of the 2010 European Accounts System contributed revision for IFATS statistics which implied, amongst others, the need to distinguish holdings from head-offices.
Within the Portuguese statistical system, data from the Statistical Business Register (SBR)constitutes a primary input for the compilation of annual national accounts. The introduction of the European System of Accounts 2010 (ESA 2010) in the National Accounts resulted in several modifications that concurrently impacted business statistics. notable change was the reclassification of the institutional sector of specific entities, which necessitated a distinction between holding companies and head offices. These changes prompted an immediate impact on the Integrated Business Accounts System (IBAS), leading to a revision of the data series for business statistics. This revision encompassed, among other adjustments, the reclassification of business units between section K of the NACE Rev.2 - Financial and insurance activities and section M -Professional, scientific and technical activities.
2021 – 2023
Entry into force of the EU Regulation 2019/2152 on European Business Statistics (EBS Regulation) and implementation of the enterprise statistical unit, in accordance with the Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community (Official Journal of the European Communities No L 076, 30 March 1993, p. 1), Section III of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community.
15.3. Coherence - cross domain
Inward FATS data are produced for all Portuguese active enterprises included in SBS data (is a subset of the SBS population) and these are compiled by linking information on foreign control and ownership with economic variables obtained in the SBS framework.
15.3.1. Coherence - sub annual and annual statistics
Not available
15.3.2. Coherence - National Accounts
Inward FATS is an input to National Accounts.
15.3.3. Coherence – National Statistical Business Register (NSBR)
We use the information available in Business Register when compiling the inward FATS statistics, the information is coherent.
15.3.4. Coherence – Structural Business Statistics (SBS)
Inward FATS data are produced for all Portuguese active enterprises included in SBS data (is a subset of the SBS population) and these are compiled by linking information on foreign control and ownership with economic variables obtained in the SBS framework.
15.3.5. Coherence – R & D
Not available
Statistics Portugal is responsible for inward FATS and R&D statistics is the responsibility of the Directorate-General for Education and Science Statistics, DGEEC.
15.3.6. Coherence – Foreign Direct Investment (FDI)
Not available
Statistics Portugal is responsible for inward FATS and Foreign Direct Investment (FDI) statistics is the responsibility of the Central Bank.
15.3.7. Coherence – EuroGroups Register (EGR)
Analyses and compare EGR final frame with IFATS frame, identified and analysed of discrepancies between EGR and FATS populations and compare GGH and UCI between EGR and IFATS, respectively, aiming to diminish inconsistencies and working to harmonize the UCI in these two populations mentioned.
15.4. Coherence - internal
Before finalization, the internal consistency of the data, including links between variables and coherence between data series, is thoroughly checked. This process ensures that aggregates consistently align with their primary sub-aggregates, maintaining a high level of coherence throughout the dataset.
Statistics Portugal prioritizes minimizing the statistical burden on respondents. In the context of inward FATS,the focus is primarily on utilizing administrative data, particularly the Simplified Business Information (IES). This approach significantly lessens the reporting burden on enterprises. However, it's important to note that specific information about the actual costs associated with this statistical burden is not available.
17.1. Data revision - policy
The revision policy for Structural Business Statistics (SBS) data aligns with the general revision policy, emphasizing transparency in the production and dissemination of official statistics. Further details about this policy can be accessed in the revisions policy publication available on Statistics Portugal's website.
The provided document on the revisions policy aims to clarify essential aspects, including key factors influencing a revision, the types of revisions that may occur, and the dimensions guiding the analysis of a revision. It also outlines the General and Operational Principles of the revisions policy that Statistics Portugal plans to consolidate in the future.
17.2. Data revision - practice
Inward FATS 2021 statistics statistics have been revised.
Statistics Portugal is responsible for inward FATS and R&D statistics is the responsibility of the Directorate-General for Education and Science Statistics, DGEEC, therefore the business enterprise expenditure on R&D (BERD) has as source a survey and on inward FATS (IFATS) has as source administrative data. In the first version sent in July 2023, the variables R&D Personnel“ (RND_PER) and Intramural R & D expenditure (IM_RND_EXPN) included in inward FATS data 2021 had as source administrative data. In the data sent in july 2024, these variable was revised using the data collected in business enterprise expenditure on R&D survey of DGEEC, guarante the consistent between two sources: inward FATS and R&D statistic.
We had to replace the EBSFATS_T14_A_PT_2021 flow where the only change was to the RND_PER and IM_RND_EXPN variables.
17.2.1. Data revision - average size
Not applicable
18.1. Source data
Main data sources used to identify UCI is:
Administrative source
Euro Groups Register
Statistical Business Register
18.1.1. Methodological approach
Inward FATS data are produced for all Portuguese active enterprises included in Structural Business Statistics (SBS) data (is a subset of the SBS population) and these are compiled by linking information on foreign control from Administrative Data provided by fiscal authorities and ownership with economic variables obtained in the SBS framework.
Main source to update the SBS as also IFATS is Administrative Data provided by fiscal authorities to find out which enterprises are foreign controlled, this source provides information about the country of the first foreign owner.
Data EuroGroups Register (EGR) FATS is an additional source for enterprise group structures to help and analyse information on view the relationships between legal units to find out the chain of control and country of residence of the UCI.
Statistics Portugal disseminates at at the end of the year t and based on administrative data, provided by fiscal authorities information about the IFATS t-1. This information is updated later, for IFATS definitive data, with the information from the EGR t available in t+1.
Note: From reference year 2004 onwards, the production of Structural Business Statistics in Portugal has been changed, as starts to make use of tax data provided by tax authorities. The two major changes were the inclusion of the independent workers and the use of exhaustive information, instead of using extrapolated data from Annual Business Survey. In this context, from reference year 2005 onwards Inward FATS statistics has been compiled using administrative data.
18.1.2. Use of cut-off thresholds
Not applicable.
18.2. Frequency of data collection
Annual
18.3. Data collection
Internal FATS data is produced for all active Portuguese companies included (100 %) in the SBS data, which is a subset of the SBS population and is compiled by linking information on foreign control and ownership with economic data obtained from the SBS framework.
Main source (about 95%) and the only source of information to update the UCI in IFATS is Administrative Data provided by Simplified Business Information (IES). the remaining information becomes from EuroGroups Register (EGR).
Data EuroGroups Register (EGR) FATS is an additional source for enterprise group structures which helps by around 60% analyse and confirm information on view the relationships between legal units to find out the chain of control and country of residence of the UCI.
18.4. Data validation
Analyse and compared the administrative metadata with more than 50% of ownership of which is held by a foreign company, from the reference year with the latest existing IFATS table and identified the discrepancies and the new legal units.
The methodology for comparing the two populations is based on micro level. The two populations are merged using a common key variable i.e national identifier.
The existing administrative data used to compile FATS statistics only provides information on the country of the first known foreign owner. When there are doubts about the UCI, we usually take some steps to find out the final foreign unit that actually exercises control over the subsidiaries in Portugal, by researching and analysing the resident companies, we also visit the website and the annual reports of the subsidiaries, trying to find out the chain of control and the country of residence of the UCI and who actually controls and manages the group.
With this procedure, we found that in most cases the first foreign owner known from the administrative source is the UCI. The remaining legal units for which we cannot find the country of the UCI are attributed to the first known foreign owner, if no further information is available.
All characteristics are obtained from SBS data which, in turn, is obtained from the administrative source, These are compiled by linking information on foreign control and ownership with economic variables obtained in the SBS framework and also harmonised UCI belonging to the same group of legal units in the country.
18.5. Data compilation
Statistics Portugal relies heavily on administrative data as the primary source of information. Inward FATS is a subset of the SBS population.
We use Statistical Analyses System software to compile inward FATS data.
18.5.1. Imputation - rate
In 2023, through a comparison between the Business Register and administrative data, approximately 500 non-responding units were identified in the administrative source. This represents approximately 4.6% of the total number of companies, 6.8% of employed persons, and 10.4% of turnover.
Compared to 2022, the turnover presents a high rate because the figures for all insurance and reinsurance companies were estimated. Insurance and reinsurance enterprises classified under NACE Rev.2 groups 651 and 652 have implemented a new accounting regime, in line with IFRS 17 - Insurance Contracts in Portugal, as well as the Chart of Accounts for Insurance Companies. This change applies to accounting periods starting on or after January 1, 2023. As a result, the data for these entities for 2023 reference year was not yet available when the 2023 FATS data were produced.
18.5.2. Use of a method to deal with non-response (both unit and item non-response)
To identify enterprises to impute, administrative data is compared with Business Register data.
For the UCI, when information is not available for year n, the value for the previous reference period is imputed.
Foreign Affiliates Statistics (FATS) measure the commercial presence through affiliates in foreign markets.
Inward foreign affiliates statistics (IFATS) shall mean statistics describing the activity of foreign affiliates resident in the compiling country.
In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control.(Table 14 of the EBS Implementing Regulation (EU) 2020/1197).
Variables on the country-level business activities in the IFATS data category:
Business activities in foreign control:
210301. Number of foreign-controlled enterprises
220501. Number of employees and self-employed persons in foreign-controlled enterprises
220701. Employee benefits expense in foreign-controlled enterprises
230301. Intramural R & D expenditure in foreign-controlled enterprises
230401. R & D personnel in foreign-controlled enterprises
240301. Total purchases of goods and services of foreign-controlled enterprises
240302. Purchases of goods and services for resale of foreign-controlled enterprises
250601. Net turnover of foreign-controlled enterprises
250701. Value of output of foreign-controlled enterprises
260201. Foreign-controlled enterprises’ gross investment in tangible non-current assets
250801. Value added of foreign-controlled enterprises
Business activities in total economy:
210101. Number of active enterprises
220101. Number of employees and self-employed persons
220301. Employee benefits expense
230101. Intramural R & D expenditure
230201. R & D personnel
240101. Total purchases of goods and services
240102. Purchases of goods and services for resale
250101. Net turnover
250301. Value of output
250401. Value added
260101. Gross investment in tangible non-current assets
30 October 2025
Foreign Affiliates Statistics (FATS) measure the commercial presence through affiliates in foreign markets.
Inward foreign affiliates statistics (IFATS) shall mean statistics describing the activity of foreign affiliates resident in the compiling country.
In country-level business statistics foreign-controlled enterprise shall mean an enterprise resident in the compiling country over which an ultimate controlling institutional unit not resident in the compiling country has control.(Table 14 of the Implementing Regulation (EU) 2020/1197).
Ultimate Controlling Institutional of a foreign affiliate (UCI) shall mean the institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.
Control is the ability to determine the general policy of the affiliate by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders' voting power or more than half of the shares.
Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A.
Active enterprise is a statistical units which at any time during the reference period was ‘enterprise’, as defined in Regulation (EEC) No 696/93, and also active during the same reference period. 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.
Employees and self-employed persons are persons who work for an observation unit on the basis of a contract of employment and receives compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind; and persons who are 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.
Employee benefits expense contains all expenses arising in relation with employee benefits, recognized by the statistical unit during the reference period. Those are are all forms of consideration given by the statistical unit in exchange for service rendered by employees or for the termination of employment.
Research and experimental development (R & D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge. Expenditures on intramural R & D represent the amount of money spent on R & D that is performed within a reporting unit. Intramural R & D expenditures are all current expenditures plus gross fixed capital expenditures for R & D performed within a statistical unit during a specific reference period whatever the source of funds. R & D current expenditures include labour costs for internal R & D personnel and other current costs (costs for external R & D personnel, purchase of services.). Gross fixed capital expenditures for R & D include: acquisition of land, acquisition of buildings, acquisition of information and communication equipment, acquisition of transport equipment, acquisition of other machinery and equipment, acquisition of capitalised computer software, acquisition of other intellectual property products.
R & D personnel in a statistical unit include all persons engaged directly in R & D, whether employed by the statistical unit or external contributors fully integrated into the statistical unit’s R & D activities, as well as those providing direct services for the R & D activities (such as R & D managers, administrators, technicians and clerical staff).
Total purchases of goods and services contains all amount of goods and services purchased by the statistical unit, recognized in accounting as either current assets or expenses during the reference period.
Purchases of goods and services for resale in are purchases of goods for resale to third parties without further processing. It also includes purchases of services by ‘invoicing’ service companies, i.e. those whose turnover is composed not only of agency fees charged on a service transaction (as in the case of estate agents) but also the actual amount involved in the service transaction, e.g. transport purchases by travel agents.
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.
Value of output represents the value of the total output of the statistical unit, generated during the reference period.
Value added is a composite indicator of net operating income, adjusted for depreciation, amortization and employee benefits, all components being recognized as such by the statistical unit during the reference period.
Gross investment in tangible non-current assets includes all additions to tangible non-current assets, recognized as such by the statistical unit during the reference period, except any increases from revaluations or reversals of previously recognized impairment losses and from reclassifications (transfers) of other tangible non-current assets.
Special Purpose Entities (SPE): Information from the EGR is used when is available.
Equally shared control: When there is equally shared control take some steps to find out the final foreign unit that actually exercises control over the subsidiaries in Portugal, by researching and analysing the resident companies, we also visit the website and the annual reports of the subsidiaries, trying to find out the chain of control and the country of residence of the UCI whenever we can´t find the dominant controller we attribute the UCI D09 (Extra-EU (changing composition) not allocated) or Z12 (Equally-shared control of UCIs (ultimate controlling institutional units of a foreign affiliate) of more than one EU member state).
Multiple minority ownership: There are not considered minority ownership by a foreign company although we visit the website and the annual reports of the subsidiaries, trying to find out the chain of control and the country of residence of the UCI. Whenever we can´t find the dominant controller we attribute the UCI D09 (Extra-EU (changing composition) not allocated) or Z12 (Equally-shared control of UCIs (ultimate controlling institutional units of a foreign affiliate) of more than one EU member state).
The statistical unit of FATS is the enterprise as defined in line with the Regulation (EEC) No 696/93 on the statistical units for the observation and analysis of the production system in the Community.
For all variables except for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to N and P to R and divisions S95 and S96;
For variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to F.
Portugal
Reference 2023.
Source to update the IFATS is Administrative annual Data provided by fiscal authorities, but to help and analyse information on view the relationships between legal units to confirm out the chain of control and country of residence of the UCI we use Data EuroGroups Register (EGR).
Number of enterprises and employment variables are recorded in absolute figures.
Monetary data of enterprises are recorded in thousands of euros.
Statistics Portugal relies heavily on administrative data as the primary source of information. Inward FATS is a subset of the SBS population.
We use Statistical Analyses System software to compile inward FATS data.
Main data sources used to identify UCI is:
Administrative source
Euro Groups Register
Statistical Business Register
Annual for all variables except for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to N and P to R and divisions S95 and S96.
Biennial (every odd-numbered year) for variables 230101 (Intramural R & D expenditure), 230301 (Intramural R & D expenditure in foreign-controlled enterprises), 230201 (R & D personnel) and 230401 (R & D personnel in foreign-controlled enterprises): Market producers of NACE Sections B to F.
IFATS statistics are calculated annually for reference year T.
Data collection takes place at t+7 months after the end of the reference period.
Data dissemination at national level in press release takes place at t+11 months.
Data transmission to Eurostat takes place at t+20 months.
