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Foreign controlling EU enterprises - outward FATS (fats_out)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: Hungarian Central Statistical Office

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Foreign Affiliates Statistics (FATS) measure the commercial presence through affiliates in foreign markets. 

 

In country-level business statistics outward foreign affiliates statistics (OFATS) describe the activity of domestic affiliates of every resident ultimate controlling institutional unit which has at least one foreign affiliate and the activity of foreign-controlling enterprises resident in the compiling country (Table 15 of the EBS Implementing Regulation (EU) 2020/1197).

 

In statistics on international activities outward foreign affiliates statistics (OFATS) describe the activity of foreign affiliates abroad ultimately controlled by an institutional unit resident in the compiling country (Table 33 of the EBS Implementing Regulation (EU) 2020/1197).

 

Variables on country-level business activities in the OFATS data category:

  • Number of foreign-controlling enterprises (UCI concept) and domestic affiliates
  • Number of employees and self-employed persons in foreign-controlling enterprises (UCI concept) and domestic affiliates
  • Net turnover of foreign-controlling enterprises (UCI concept) and domestic affiliates

Variables on the international activities in the OFATS data category:

  • Number of enterprises abroad ultimately controlled by institutional units of the reporting country
  • Number of employees and self-employed persons in enterprises abroad ultimately controlled by institutional units of the reporting country
  • Employee benefits expense in enterprises abroad ulti­mately controlled by institutional units of the reporting country
  • Gross investment in tangible non-current assets of enter­prises abroad ultimately controlled by institutional units of the reporting country
  • Net turnover of enterprises abroad ultimately controlled by institutional units of the reporting country

31 October 2025

In country-level business statistics Outward Foreign Affiliates Statistics (OFATS) describe the activity of domestic affiliates of every resident ultimate controlling institutional unit which has at least one foreign affiliate and the activity of foreign-controlling enterprises resident in the compiling country (Table 15 of the EBS Implementing Regulation (EU) 2020/1197).

 

In statistics on international activities Outward Foreign Affiliates Statistics (OFATS) describe the activity of foreign affiliates abroad ultimately controlled by an institutional unit resident in the compiling country (Table 33 of the EBS 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.

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.

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.

 

Description of the coverage of Special Purpose Entities (SPE): There are no Special Purpose Entities in the target population.

Description of the treatment of equally shared control: There are no equally shared controlled enterprises in the target population.

Description of the treatment of multiple minority ownership: It can be individually checked whether the minority share provides enough control. If it does, the company is added to the frame.

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.

Market producers of NACE Sections B to N and P to S (for the EBS Implementing Regulation (EU) 2020/1197 table 15) and market producers of NACE Sections B to N and P to S abroad (should cover the foreign affiliates of all ultimate controlling institutional units of the reporting country) (for the EBS Implementing Regulation (EU) 2020/1197 table 33).

Hungary

This quality report covers the reference year 2023.

Data refer to calendar year.

Accuracy of statistical outputs in the general statistical sense in outward FATS is the degree of closeness of estimates to the true values.

The overall accuracy of the results (for Table 15 and Table 33) can be assessed as very good.

Unallocated geographical codes (Extra EU-27 not allocated) or unallocated activity codes (NACE activity not allocated) were not used.

Only minor under coverage error and non-response error occured.

The coverage error was due to the cut-off threshold used for foreign affiliates statistics. Reporting units with direct investment of less than 40.000 EUR are not included in the FDI target population, so our figures are slightly underestimated. We have no tools to estimate the missing part of the data.

Non-response errors included unit non-response and item non-response.

Unit non-response occurs when not all the reporting units in the sample participate in the survey, while item non-response occurs when respondents provide incomplate information.

Non-response treatment was not applied, non-responding enterprises were not included in the population.

The target population and the number of response units are very small, threfore it is not possible to form different kinds of imputation groups based on special characteristics.

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

Monetary data of enterprises are recorded in thousands in HUF currency.

The data source was FDI questionnaire in case of T33, and SBS database in case of T15.

There was no need to estimate characteristics or activities, as the information was available from the given sources.

 

For outward FATS statistics the data of foreign affiliates abroad on investments exceeding HUF 10 million are collected by the Hungarian National Bank in the "Registry information of the final investors and non-resident partners of data suppliers involved in capital investment" and in "Annual data supply of capital investments" (OSAP No. 2381).

The share of dependence on a given source: Target population - 100% from FDI questionnaire, variables - 100% from FDI questionnaire, UCI - 100% from inward FATS database.

The data of foreign-controlling enterprises and their domestic affiliates active in Hungary comes from the SBS database. The sources of the SBS data are: data collection by questionnaire (number of persons employed is more than 19), tax returns (number of persons employed is less than 20 and the non response enterprises), Hungarian Financial Supervisory Authority  (HFSA).

 

Annual

OFATS statistics are calculated annually for reference year T.

Data collection takes place at t+18 months after the end of the reference period.

Data transmission to Eurostat takes place at t+20 months.

Data dissemination at national level takes place at t+21 months.

The content of the national data sent to Eurostat from reference year 2021 is defined according the European Business Statistics EBS Regulation (EU) 2019/2152 and EBS Implementing Regulation (EU) 2020/1197.

Geographical comparability with all EU Member States is therefore fully ensured.

Outward FATS statistics can be compared over time for the corresponding time series.