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Foreign controlled EU enterprises - inward FATS (fats)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: Statistical Office of the Republic of Slovenia (SURS)

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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

Data are expressed in thousants of EUR or in units.

The inward FATS data are disseminated with annual frequency, with a detail by controlling country of location (partner country) and economic activity of the foreign affiliate. Research and Development variables (R&D) are disseminated every second year.
In Annex III.A.1 (Regulation 2020/1197) it is stated that it is not necessary to compile FATS variables subject to the 1% rule if the contribution of the Member State for a related indicators is less than 1% of the EU total. The 1% rule for the Table 14 may be applied according to the defined Simplifications in the Annex III.A.1 of the COMMISSION IMPLEMENTING REGULATION (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics of 27 November 2019.
Slovenia applyed the 1% rule for the following variables stated in the Table 14 Country-level business statistics on enterprises by country of ultimate control:

  • 230101 Intramural R & D expenditure,
  • 230201 R & D personnel,
  • 230301 Intramural R & D expenditure in foreign-controlled enterprises and
  • 230401 R & D personnel in foreign-controlled enterprises

According to ex-ante assessment for FATS, the condition has been fulfilled partially in the three years prior to the reference year. Therefore, it is necessary for Slovenia to transmit the full set of variables under Regulation 2020/1197 for the topic Inward FATS under aforementioned activity breakdowns of NACE.

31 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).

Foreign affiliate in the framework of outward FATS is an enterprise or branch not resident in the compiling country over which an institutional unit resident in the compiling country has ultimate (direct or indirect) control.

Domestic affiliate shall mean an enterprise resident in the compiling country over which a UCI resident in the same compiling country has control.

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.

 

Coverage of Special Purpose Entities (SPE): Information on SPE units are derived from EGR database and are important from UCI prespective. 

Description of the treatment of equally shared control:

the recommended procedure from the manual (i.e. the residency of partners criterion) is used:

  • If one investor is resident in the same country as the affiliate under consideration, the joint venture can be considered as under domestic control (and irrelevant for IFATS).
  • If a joint venture is controlled only by foreign partners and one of them is from an EU or EFTA country, the European controlling unit (or EFTA) is chosen.
  • If both partners are EU/ EFTA units, then this has to be manually checked and decided based on some additional sources (data from the commercial database, annual reports etc.).

Description of the treatment of multiple minority ownership: 

multiple minority control are special cases where an enterprise is owned by three or more foreign investors resident in at least two different foreign countries and none of the enterprises has a 50% share of ownership or more. Although it is difficult to identify effective minority control, FATS data would be underestimated if such cases were neglected and affiliates controlled by several foreign minority shareholders were considered domestically controlled. It is therefore important to determine the existence of minority control and to verify the links between the owner enterprises. To do so additional data sources are used for this action. For the cases of multiple minority control (ownership), the sum of shareholdings of 10% and more is considered. The country of the UCI is identified by adding up the shares of all shareholders resident in each individual country and if the country ‘controls’ more than 50% of shares, that foreign country is the UCI. A shareholding structure of an enterprise can be asserted by legal persons and natural persons at the same time. To determine the correct country of UCI that has control over an enterprise, in these cases we sum up shareholdings from natural and legal persons to apply country of UCI.  This cases are also manualy checked and some additional sources are also used (data from the commercial database, annual reports etc.).

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.

The statistics refer to enterprises and branches under foreign control where the controlling unit itself is not controlled by another legal unit or natural person (Ultimate Controlling Institutional Unit, UCI concept.)

The unit described by the published data is an active enterprise or a branch on the territory of the Republic of Slovenia, either under majority or multiple minority direct or indirect control of the foreign institutional units (enterprises or natural persons).

The unit is active if it had turnover or employees or investment and were therefore active during at least a part of the reference period.
Inward foreign affiliate is an enterprise resident in Slovenia (the compiling country of the statistics) over which an institutional unit not resident in Slovenia (the compiling country of the statistics) has control. An enterprise may consist of several ownership-related legal units, as long as they operate on the market as one independent enterprise.

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.

To be able to compare with the whole business economy, the domestically-controlled enterprises are also included in the statistical population.

Republic of Slovenia.

Data refers to the calendar year, which in some cases corresponds to the fiscal year.

The overall accuracy of the results can be assessed as good. The Inward FATS data are a subset of SBS data, which means that they are derived from the same underlying data sources. The data is obtained by combining administrative information and statistical questionnaires for the R&D variables.

Number of enterprises and employment variables are recorded in absolute figures.

Monetary data of enterprises are recorded in thousands EUR.

IFATS data are compiled from administrative sources (SBR, SBS, R&D survey, and EGR) following a structured set of rules to produce the final statistical outputs.

Compilation procedures include:

  • Identification selection of relevant enterprises from the Statistical Business Register (SBR).
  • Identification of controlling countries using EGR data for foreign-controlled enterprises. Additional data on Ultimate Controlling Institution (UCI) are also taken from the EGR final frame.
  • Integration of economic variables (turnover, value added, employment) from SBS and R&D surveys, harmonizing definitions and classifications.
  • Primary and Secondary Confidentiality is applied and also aligned with SBS and R&D data.
  • Data reconciliation and validation, including cross-checks between sources, consistency checks across variables, and year-to-year coherence.
  • Aggregation and derivation of key indicators.

Tools used:

  • Standard statistical software for data extraction, linking, and processing (e.g., SAS).
  • Primary and Secondary Confidentiality is applied using SAS and TauArgus
  • Automated validation tools STRUVAL and CONVAL (via EDAMIS) for structural and content consistency before dissemination to Eurostat.

These procedures ensure that the final IFATS dataset is accurate, internally consistent, harmonized with related statistical domains, and confidentially protected.

 

The main source for identification of the enterprises under foreign control is National Enterprise Group Register which is in turn based on the following sources: the Central Register of Dematerialized Securities, which is kept by the Central Securities Clearing Corporation (KDD), the Central Court Register, which is kept by the Supreme Court of the Republic of Slovenia (SRG), the data on capital investments, which are collected by the Bank of Slovenia (BS), and the Statistical Business Register, which is kept by the Statistical Office of the Republic of Slovenia.
Obtained results on the IFATS identification are then linked to SBS micro database.

From the reference year 2018 on, we astablised collaboration between the national business registers (NSBR), EGR and Inward FATS. National business processes on Inward FATS surveys are now more integrated with the EGR and the EGR is used as one of the main data sources (backbone) for the production of Inward FATS. With establishment (identification and agreement) of single UCI for both processes, we made the EGR and FATS output more consistent, since for all cases where inconsistencies were identified between the UCIs in BR/EGR and FATS, the agreed UCIs from the EGR is used.

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 the reference year T. The data collection occurs at T+16 months after the end of the reference period and after EGR becomes available at T+15 months. R&D data, which are collected biennially, are available as final and validated at T+18 months for both variables. The compilation of economic data on IFATS enterprises, sourced from the Structural Business Statistics (SBS), is carried out at T+18 months. Data transmission to Eurostat takes place at T+20 months, followed by data dissemination at the national level at T+21 months.

The time period between the end of the reference period and data collection is 16 months.
The time period between the end of the reference period and the first release of the data at national level is 21 months.

Data is comparable across EU Member States as the legal basis and harmonised methodology was adopted with the European Business Statistics Regulation (EU) 2019/2152 and Implementing Regulation (EU) 2020/1197. 

The IFATS time series are available from 2008 onwards.

The comparability of the statistics over time has been affected by methodological and conceptual changes, resulting in distinct periods in the series.

Particular reasons for breaks in time series in FATS data is the implementation of the EBS regulation (from reference year 2021 on).