$14,020 – which amounts to an overall effective tax rate of 20.02% of the entire amount. Rates are for the tax year 1 April 2021 to 31 March 2022, and are based on tax code M (primary income without student loan) and excludes the ACC earners' levy. The earners' levy rate (including GST) for the period 1 April 2022 to 31 March 2023 is 1.46% ($1.46 per $100). Tax credits The amount of tax actually payable can be reduced by claiming tax credits, e.g. for donations, housekeeper, independent earners, and payroll donations. Credits on income under $9,880 and for children were removed effective from 1 April 2013. Tax deducted at source In most cases employers deduct the relevant amount of income tax from salary and wages prior to these being paid to the individual. This system, known as pay-as-you-earn, or PAYE, was introduced in 1958, prior to which employees paid tax annually. In addition, banks and other financial institutions deduct the relevant amount of income tax on interest and dividends as these are earned. This withholding tax is known as either resident withholding tax (RWT) or non-resident withholding tax (NRWT), depending on the status of the lender; NRWT is at a higher rate. At the end of each tax year, individuals who may not have paid the correct amount of income tax are required to submit a personal tax summary, to allow the IRD to calculate any under or overpayment of tax made during the year. Double taxation agreements Individuals who are tax resident in more than one country may be liable to pay tax more than once on the same income. New Zealand has double taxation agreements with various countries that set out which country will tax specific types of income. Some agreements protect pension payments as well. The agreement with the United States, for example, prohibits New Zealand from taxing American social security or government pension payments, and the reverse is also true. ACC earner's levy All employees pay an earner's levy to cover the cost of non-work related injuries. It is collected by Inland Revenue on behalf of the Accident Compensation Corporation (ACC). The earner's levy is payable on salary and wages plus any other income that is subject to PAYE, for example overtime, bonuses or holiday pay. The levy is 1.39% for the year from 1 April 2017 to 31 March 2018. It is payable on