Indicators of foreign affiliates in Latvia
Data on indicators of activity of foreign affiliates in Latvia are used to obtain information on foreign affiliates in Latvia and to assess financial situation in such enterprises, number of employees and other indicators by kind of economic activity and country.
Terms and definitions
The controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident.
The ability to determine the general policy of an enterprise.
Control exists if the unit, whether directly or indirectly, owns more than half of the shareholders’ voting power or more than half of the shares.
Direct control – direct activities of the head enterprise with the fixed capital of enterprise / legal unit.
Indirect control – control of the enterprise / legal unit trough other company.
Foreign Affiliates Statistics (FATS)
Statistics describing the activity of foreign affiliates resident in the compiling economy i.e. in Latvia.
It has statistics on the Latvian company controlled by legal or natural persons, who are not Latvian residents.
Ultimate controlling institutional unit of a foreign affiliate
Ultimate controlling institutional unit of a foreign affiliate is the institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.
In case of large multinational enterprise groups the chain of control could be long and complicated and cover several countries.
Value added [structural business indicators]
Production value from which the value of goods and services used in production is deducted.
Value added shows increase of market value of product, which has arisen in the result of an economic activity.
Personnel costs [structural business indicators]
Total remuneration in cash or in kind which employer pays to an employee as a reward for the work done.
Personnel costs also include employer's social security contributions.
Persons employed [structural business indicators]
Employees working on the basis of work or enterprise agreement both at main job, and at secondary job, including self-employed natural persons, employers, working family members and persons engaged in entrepreneurship and not employing others.
Gross capital investment in tangible fixed assets
Gross capital investment in tangible fixed assets include purchase, formation and repair of fixed assets (land, buildings, costs of unfinished construction, equipment, machinery with time of exploitation over a year, etc.).
Any entity engaged in economic activity may be considered as an enterprise irrespective of its legal form.
These include self-employed persons and family enterprises that are involved in some craft or pursue another activity as well as partnerships and associations engaged in economic activity. An enterprise may pursue one or several activities at one or at several locations.
Economically active enterprises
Enterprises manufacturing products, providing services or employing people in the reference period in the respective time period regardless of whether they were active all reference period or just part of it.
European Union (excl. Latvia)
Extra European Union countries
Offshore Financial Centres
Data collection and statistical processing
Survey method and data source
Data on indicators of activity of foreign affiliates in Latvia are obtained conducting a full-scope survey. For the survey data from the following sources are used:
- CSB survey "Report on activities of a foreign affiliate";
- CSB survey "Complex report on activities";
- Limited liability company "Lursoft IT" information on foreign investors in the enterprise’s capital;
- Annual statements submitted to the State Revenue Service – Balance sheet, Profit or Loss Statement;
- EuroGroups Register information.
Information is collected in breakdown by kind of economic activity according to NACE Rev. 2 and by country of residence of the ultimate controlling institutional unit.
The control is determined based on ownership links at the end of the calendar year.
The ultimate controlling institutional unit may be either a legal person (enterprises, foundations, government institutions, local government institutions, banks, etc.) or a private person (natural person). If the ultimate controlling unit is a legal person then the country of location is the country where the legal person is entered in the register (e.g. Commercial Register). If the ultimate controlling unit is a natural person, then the country of location is the country of permanent residence (country of residence).
All economically active enterprises and all branches under foreign control. Data on enterprises engaged in financial intermediation is not included.
|Foreign affiliates in Latvia|
Indicators are calculated from data provided by enterprises and information from the State Revenue Service.
Gross capital investment in tangible assets is gross capital investment in purchase of land, gross capital investment in existing buildings and constructions, gross capital investment in construction and reconstruction of buildings and gross capital investment in equipment and appliances.
Production value is turnover or income of self-employed natural persons from economic activity;
+/– change in stocks of finished products and work in progress manufactured by the enterprise;
+/– change in stocks of goods and services purchased for resale in the same condition as received;
– purchase of goods and services purchased for resale in the same condition as received;
+ capitalized production;
+ other operating income from economic activity (excluding subsidies).
Value added is turnover or income of self-employed natural persons from economic activity;
+/– change in stocks of goods and services;
+ capitalized production;
+ other operating income from economic activity;
– purchase of goods and services or expenses of self-employed natural persons for economic activity;
– other taxes on products which are linked to turnover but not deductible;
– taxes and duties linked to production.
Total purchase of goods and services is value of all goods and services purchased in the production process for resale or consumption. Includes raw materials, materials, low-value inventory and other goods or services for insurance of enterprise needs and activity. For self-employed natural persons the part of expenses for economic activity is included.
Personnel costs are calculated: wages and salaries + social insurance costs and social tax paid for self-employed natural persons.
Turnover item of Profit or Loss Statement "net turnover" minus operating subsidies.
Number of employed persons is expressed as an average annual indicators.
Indicators of activity of foreign affiliates in Latvia are published on the basis of the following classifications:
- Statistical Classification of Economic Activities in the European Community, Rev. 2 (NACE Rev. 2);
- Country codes and codes for their subdivisions (ISO 3166-1).