@Bassment Dweller, an important fact to take into account here, is whether the company is an SBC (Small Business Corporation).

How to determine if the company is an SBC? In summary:

* The the turnover must be less than R20 million per year
* None of the shareholders may have an interest in another CC/Company.
* Not more than 20% of the entity's income may consist of investment income/income from rendering a personal service (personal service is defined in the income tax act). As far as I understand, investment income includes interest as well as rentals.

Should the company be an SBC, it will qualify for very favourable tax rates. Instead of 28% on the taxable income, the tax payable will be as follows (in 2014):

ON 67111 0%
67112-365000 7%
365000-550000 21%
550000+ 28%