HAS THE BANK REQUESTED YOU FOR AN ITA34?
An ita34 also sometimes known as an IT34 is the SARS income tax assessment issued immediately after you have submitted your income tax return to SARS.
In essence, it is a summary of your Annual Income, Expenditure, Assets as well as Liabilities.
You can view an example ITA34 by clicking here.
Sars issues mainly two types of ITA34’s namely:
When applying for a loan, you must make sure that you know which one the bank is looking for.
We have included a link below to both types to enable you to spot the differences.
- To view an example of an Individual ITA34 please click here.
- To view an example of a company ITA34C, click here.
We can also assist you in obtaining yours if you fill in our online quotation application form.
SO WHY DOES THE BANK NEED IT?
The banks prefer an IT34 as opposed to Financial Statements because essentially, an IT34 is a simplified version of your financial statements.
Furthermore, the banks trust the financial figures given on the ITA34 more than the financial statements because they know that they are not overstated.
SO HOW DO YOU GET AN IT34?
In order to obtain one, one has to submit an income tax return.
In order to submit an income tax return, one has to be registered with SARS.
And, if your business makes more than R1 million, then a set of Annual Financial Statements will be needed by SARS in order to support the submission.
You should also be careful not to just go to SARS to obtain a historical IT34 that might be reflecting nil returns.
If your ITA34 shows zeros, you might as well as forget about that mortgage, credit card or motor vehicle finance.
This article has been written by Mr. Allan Lutalo, a qualified Tax Accountant and Tax Practitioner.
Allan can assist you with your ITA34 application requirements.
To obtain a speedy ITA34, fill in the online application form to get a quotation.
You may also visit my offices at No 41 Brand Road, President Park, Midrand, Johannesburg or call me directly on 011 568 9784.