Employee Mutual Benefit Organization

Frequently asked questions

Confidential – Not to be distributed outside Schlumberger

1. What does “EMBO” stand for and what is its purpose?
“EMBO” stands for Employee Mutual Benefit Organization. EMBO is incorporated as a “Stichting” (a foundation) established under the laws of the Netherlands. The foundation is owned by its members and is legally and financially independent from Schlumberger.
The purpose of the Fund is to assist its members (the eligible employees) with the payment of their personal taxation liabilities arising from their Employment Income in their respective country of assignment.


2. What are the criteria to qualify for EMBO membership?
In order to qualify for EMBO membership, you need to be employed on “International Mobile – Expatriate Status” with the Schlumberger Oilfield Services group of companies and affiliated companies (in which Schlumberger Ltd controls 50% or more of the voting rights).


3. Is it compulsory to join EMBO?
As an independent entity from Schlumberger, participation to EMBO requires eligible employees to enroll on a voluntary basis.
The competitiveness of the “International Mobile – Expatriate Status” and its consistency across the globe assume that all employees on IM status will participate to EMBO everywhere. As a result, all employees who are offered the opportunity of an assignment on “International Mobile – Expatriate Status” are encouraged to join EMBO.
Once enrolled in EMBO, it is a requirement for participants to retain their membership throughout the period of eligibility. Members do not have the right to discontinue their membership in the Fund without the consent of the Fund.


4. Why is it in my personal interest to join EMBO?
EMBO is dealing with eligible employees personal tax liabilities in a very large number of countries. The objective of the Fund is to ensure that the contributions collected from the Members will cover the personal tax liabilities of all the Members. Considering the large number of countries involved, it results with an average contribution rate which has remained quite stable over the years. Joining the Fund gives you the assurance that your personal tax cost on your employment income will remain relatively stable through your career, as long as you are on International Mobile – Expatriate Status, even when you move between countries with different tax systems.


5. Can I leave and join EMBO as I wish?
No. You are required to retain your membership throughout your period of eligibility. You do not have the right to discontinue your membership without the consent of the Fund. As explained above, the benefits of joining the Fund will be realized all over your career as International Mobile – Expatriate Status.


6. Can I be a member of EMBO during my training period with Schlumberger?
The only criterion to fulfill in order to be eligible for EMBO membership is your employment status in Schlumberger. If you are offered an assignment on “International Mobile – Expatriate Status” with the Schlumberger Oilfield Services group of companies, you are eligible to join.


7. Does EMBO apply everywhere in the world and in all Segments?
EMBO applies everywhere except USA, Canada and France. In the former countries, you cannot be “International Mobile – Expatriate Status”, hence you will not be eligible. EMBO also applies to all segments.


8. What happens to my EMBO membership when I leave the company?
When you leave the company, you lose your membership. Should you be re-hired then you will have to re-apply again. 


9. If I return to the company from suspended employment as per the established HR policies, is my membership renewed?
If your eligibility requirements are re-established, as defined in Answer 2, then you automatically resume eligibility to participate in the Fund. You will be asked by HR or by EMBO to re-sign the enrolment papers.


10. Can I join EMBO at any time of a year?
Yes, you can join EMBO at any time of the year. The only timing requirement is that you need to join EMBO within 1 month of receipt of your Application Form. If after 1 month EMBO has not received the enrolment papers, any tax refund from the fund will be suspended. 


11. What happens to my EMBO membership when I am on leave of absence due to illness?
In such a case, you will only lose your membership if your employment is suspended as per the established Schlumberger HR policies, for whatever reason, or if other events affecting your EMBO eligibility happen, otherwise you will keep the membership.


12. If I die whilst I am a member of EMBO, what happens to any of my dues?
Any payment, which is due to you in respect of a period prior to your membership being suspended or terminated, will remain payable to you, your spouse, dependants, or other legal representatives, as the case may be. So you will have to make sure that HR is being informed of the latest up-to-date information with respect to your private situation. 


13. Under what circumstances do I lose my EMBO membership?
A member will lose his membership in the event of any of the following:
a) if he ceases to be an Eligible Employee (as defined in Paragraph 2 of the Rules of the Fund)
b) if his employment is terminated
c) if his employment is suspended, for whatever reason
d) if any notice is served upon a member, as a consequence of which he is lawfully prevented from making payment of the Members’ contribution to the Fund
e) if the Fund consents


14. What can I do if my Country of Assignment mentioned on my Pay Slip does not correspond to the country I have actually been assigned to, or am actually working in?
You should report the matter to your GeoMarket Personnel Manager immediately, and ensure that corrective action is taken by the time of the following month’s Pay Slip. EMBO will not be liable for any mistakes made on this. 

1. If I need any help on EMBO matters whom can I ask?
a) You can write to EMBO at the following address:
Stichting EMBO
P.O. box 8300
3009 AH Rotterdam
The Netherlands

b) You can send an e-mail to  engelina.wessel@embo.nl, or ewessel@slb.com or using the contact form on the EMBO website. Or check MSTeams if she is available.
c) For urgent matters you can telephone EMBO at +31-85-8880879

2. Who manages and administers EMBO?
EMBO is managed by a Board of Directors consisting of 3 persons, one of whom is a member of the Fund. They have appointed the firm Forvis Mazars a company based in Rotterdam, The Netherlands, to act as the Fund Administrator.

3. Where is EMBO based?
EMBO is based in Rotterdam, The Netherlands (see the item a) under point 1 above).

4. What is the relationship between SLB (SGR) and EMBO?
Schlumberger Global Resources Ltd. (SGR) employs all the Members. EMBO functions as the Fund Administrator. Procedurally, EMBO recovers its Contribution through the members’ payroll. Also, taxes that the members pay are deducted from their payroll on a monthly basis. Therefore, a certain amount of information needs to be exchanged between SGR and EMBO.
SLB and EMBO are not related, meaning that SLB does not hold any legal or financial interest in the Fund and SLB can not claim anything from the Fund.

5. Are any EMBO members represented on the Board of Directors of EMBO?
Yes, as indicated in 2 above, of the 3 members of the Board, one is an EMBO member.

6. How are the Directors of EMBO designated?
Vacancies on the Board of Directors shall be filled by the Board of Directors.

7. Would EMBO be able to answer any questions with respect to my Salary or Income Tax deductions on my Pay Slip?
No. These questions should be directed to your local Payroll Manager or HR Manager as appropriate.

8. What information can I expect from EMBO, and with what frequency?
Members in Europe can expect a Statement every quarter. For members assigned in the rest of the world, no statements are issued. Other members do not receive any communication on a regular basis, unless they specifically ask for it. All members receive the Rules of the Fund along with enrolment forms.

1. How is the EMBO Contribution calculated?
The EMBO Contribution is calculated as a percentage (total contribution rate) of the members’ total gross salary and cash bonuses.


2. How is the percentage of the total contribution rate decided and who decides on any change of it?
The level of the Contribution rate is decided by the Board of Directors who has the right to increase or decrease the level of the total contribution rate in any manner to ensure that EMBO can meet its obligations towards its members. Any increase of the total contribution rate in excess of 25% of the member’s salary or cash bonuses shall entitle the member to give the notice to discontinue the membership.

3. How do I pay my EMBO Contribution?
The Board of Directors has requested Schlumberger to deduct the Contribution from the members’ salary (incl. cash bonuses) and transfer the funds to EMBO. For members in the UK and Denmark, the EMBO contribution is collected directly from the members’ 2nd bank account, which needs to be located outside UK and/or Denmark. If no account is present or the balance is not enough, EMBO will deduct the outstanding fee directly from the Tax refund even if this results in a 0 payment from the Fund back to the Employee.


4. Do I have to pay EMBO Contribution on my Housing, Schooling and/or Car Allowances that can be paid under local policies?
The EMBO Contribution is calculated on the gross salary and cash bonuses. It does not include local benefits, which are generally not paid in cash. When local benefits are paid in the form of cash allowances, which are themselves subject to tax under the applicable local tax rules, the EMBO contribution is normally applicable.


5. Do I have to pay EMBO Contribution on my Vacation Salary?
Yes. Vacation Salary is part of the gross salary. Therefore, EMBO Contribution will be calculated on Vacation Salary.


6. Do I have to pay EMBO Contribution on Deferred Benefits at the point of my departure from Schlumberger?
No. Deferred Benefits are not part of your Gross Salary, so no Contribution is calculated on it.

6A Do I have to pay EMBO Contribution on ILOA / Termination packages after i have already left.

YES Sometimes EMBO contribution is charged on ILOA / termination bonuses retroactively. This means that often there will be no itax for EMBO available to offset this contribution. The employee will have to make the remittance themselves asap. If one fails to do the payment, EMBO will suspend any and all payment you might expect from SLB/Baco


7. Can I claim my EMBO Contribution back from Schlumberger?
No. The Contribution shall be irrevocably assigned to the Fund. The member shall have no claim against or recourse to it.


8. Can I claim a deduction of my EMBO Contribution in my annual tax returns, either country of assignment or home country?
Whether the contribution is regarded as a tax deductible is dependent on the tax laws of the particular country. Therefore, it is suggested that members direct this question to their SLB provided tax advisor and/or local tax manager.

1. How is my monthly Income Tax deduction or my annual tax liability calculated?
This question should be addressed to your SLB provided tax advisor and/or local tax manager, as appropriate.

2. Does EMBO pay all my taxes in my Country of Assignment?
The EMBO Payment is equivalent to the income tax paid by you and is based on your Employment Income taxable in your Country of Assignment. EMBO will not reimburse you with any tax paid on private income (for example, rental income, dividend income etc.).

3. Does EMBO pay me taxes related to Housing, Schooling and/or Car benefits?
Housing, Schooling and Car benefits are part of your Employment Income. If these are taxable on your Country of Assignment, EMBO will reimburse you with the applicable tax levied.

4. How frequently does EMBO make payments to me?
EMBO makes payments at the end of each calendar quarter for members based in Europe. For all other members, the frequency of payment is monthly, at the end of each calendar month.

5. Why are my EMBO payments in Europe quarterly rather than monthly?
This methodology has been accepted by various Tax Authorities in Europe.

6. If I submit my tax returns late, will EMBO pay any interest or penalty charged to me by the Tax Authorities?
No. It is your responsibility to ensure that your tax return is filed on time. Nowadays the returns are usually e-mailed to you by the tax agent so make sure you also check your spam filter!! Moreover if you leave the country or the company, you will still be liable to finalize the tax year!

7. If I need to pay an extra sum to the Tax Authorities in my Country of Assignment at the end of the year, how do I get it back from EMBO?
After making the payment, you need to fill in an EMBO Claim Form (available with your Personnel Manager or request it from the Fund), and send it to EMBO along with a copy of the assessment or notice which informed you of the additional payment to be made, and evidence that you have made this payment (photocopy of the cheque, bankgiro etc for example) yourself directly to the Tax authorities.

8. Is there a time limit to send in my claim to EMBO?
Yes. As a general rule all additional payments made should be sent to EMBO within 3 months of your payment to the Tax Authorities. The request for payment is valid for 1 year after this NO claim will be honoured.

9. What do I do with a refund of tax received from the Tax Authorities in my Country of Assignment?
As stipulated in the Rules of the Fund, the Member is obliged to pay the Fund any refund that may be received by him or on his behalf from the Government Revenue Authority. This payment shall be made within 2 weeks from the date of receipt. 

10. Can I reconcile my Income Tax payments as per my Tax Returns with the EMBO payments to me?
EMBO will only pay you an amount equivalent to the income tax paid by you based on your Employment Income in your Country of Assignment. Your Tax Return, on the other hand, could include other types of income (e.g. private income). The two figures are not equal in that case.

11. Can EMBO issue me a statement certifying taxes paid by me in my Country of Assignment?
No. EMBO does not pay your taxes. Your employer deducts your tax from your salary and pays it to the Tax Authorities on your behalf, so your employer can issue you this statement. The local payroll department can deal with this request.

12. Who ensures that my tax liabilities/obligations in the country of assignment are taken care of after my departure from that country?
You should appoint a Schlumberger provided tax agent prior to your departure in order to take care of this (for example Deloitte). In some countries Members are obliged to use the services of the tax agent appointed by SLB. Even after you left, you will still be liable for filing the final tax return, even if this comes 1 year later. 

1. If I have Private Income in my Country of Assignment, will EMBO pay me the taxes relating to this private income?
No. EMBO pays you an amount equivalent to your taxes paid on your Employment Income only.


2. Is my contribution to the DSPP program taxable? If so, will EMBO pay me the tax?
The gain arising from your contribution to DSPP may be taxable, depending on the rules applicable in your country of assignment. DSPP is a company sponsored saving/investment plan, which you are free to join, In accordance with the Rules of the Fund, EMBO does not consider this to be Employment Income and thus will not pay you the tax thereon.


3. If I exercise my stock options, will that be taxable in my country of assignment? Will EMBO pay me the tax?
The taxability of your exercise of stock options depends on the tax jurisdiction in your country of assignment. You should ask your external tax advisor or Geomarket Tax Manager for further details. If by exercising your options, you generate taxable income in your country of assignment, in accordance with the Rules of the Fund, EMBO will not pay you the tax thereon.

4. If my spouse works in my Country of Assignment, and his/her income can be combined with mine, resulting in a partial refund of the tax originally deducted from me, can I keep the refund?
Any refund from the Revenue Authorities on account of amounts previously paid by the Fund is payable by you to the Fund.


5. If I buy a house and am allowed to deduct the mortgage interest from my taxable income, who gets the tax benefit?
As per the Rules of the Fund, any tax credit or refund that may be credited on amount payable by the Fund or received on account of amounts previously paid by the Fund shall be for the account of EMBO. If your total taxable income includes private income, the tax credit which may arise from your mortgage will first be applied on the tax payable on your private income. If the tax payable on your private income is not sufficient to fully absorb the tax credit, any excess credit or refund will be for the account of EMBO. EMBO will never refund you for taxes which have not effectively been paid to the tax office.

1. Does EMBO cover me for taxes payable in my home country?
No. EMBO covers only the income tax paid by you based on your Employment Income (salary and cash bonuses) payable in your Country of Assignment.


2. How do I treat EMBO payments in my home country tax return, if I have to file one?
This depends on the tax laws of your home country. Therefore, it is suggested that members direct this question to their SLB provided tax advisor and/or local tax manager.


3. Can I use the EMBO Quarterly Statements that I receive as a certificate showing taxes paid in my country of assignment?
EMBO quarterly statements are issued in Europe only. The amounts reflect the summary of transactions between yourself and EMBO. The amounts do not represent tax payments and this statement cannot be seen as a certificate of taxes paid.


4. Can EMBO issue me a statement certifying taxes paid by me in my Country of Assignment?
No. You should contact the Tax Manager responsible for your country of assignment.

1. Why do I need to open a 2nd bank account?
Remittance rules in the UK and Denmark require that in order not to be taxed on certain receipts these should not be remitted into the UK or Denmark. Hence, the need to open a 2nd bank account outside the UK or Denmark.

2. Can I withdraw funds from my 2nd bank account?
Not whilst you are assigned to the UK or Denmark. Once you have been transferred out of the UK or Denmark, you can use this bank account in any manner you desire.

3. Do the funds in the 2nd bank account have to be maintained in US Dollars?
Preferably, but not necessarily. However, bear in mind that EMBO remits the refunds in USD and if the account is in other currency EMBO will not be liable for profits/losses due to the conversion and bank charges. Although EMBO does their best to limit the amount of bankcharges incurred on receipts we can not totally avoid it. Furthermore EMBO is also not liable for charges incurred by third parties (i.e. correspondent banks).

4. Besides me, who has access to my 2nd bank account?
When you open your 2nd bank account, you authorise EMBO to directly debit the Contribution from this account, and to credit the EMBO payments into this account. Other than this, nobody else has access to this account besides yourself. If the direct debit option is not possible EMBO will suspend the tax refund and withdraw the outstanding liability directly from the refund. Thus you will be receiving a net amount. 

1. Will EMBO refund the bank charges on my receipt

EMBO makes payment with the request to charge all cost to them. However, in the international financial market when a 2nd bank is used those cost will not be covered by them. Needless to say that EMBO will do their best to limit the cost as much as possible. However, sometimes deduction of cost by the bank is beyond EMBO’s control.

Example

EMBO bank 100% -> Intermediary/correspondent bank 90% -> beneficiary bank.

In this case although EMBO remitted the amount in full the beneficiary bank received less due to the use of a correspondent bank.