REVENUE MEMORANDUM CIRCULAR NO. 4-2003 issued on January 15, 2003 clarifies the items that would constitute gross receipts and cost of services for purposes of computing the gross income on sale of services, which shall be the basis of the 2% Minimum Corporate Income Tax (MCIT).
          The determination of what items should comprise gross receipts and the corresponding cost of service is specified in the Circular for the following industries; 1) banks and non-bank financial intermediaries performing quasi-banking activities; 2) insurance and pension funding companies; 3) finance companiesand other financial intermediaries not performing quasi-banking activities; 4) brokers of securities (excluding banks); 5) customs, insurance, real estate, immigration and commercial brokers; 6) general engineering and/or building contractors; 7) common carriers or transportation contractors; 8) hotel, motel, rest/pension/lodging house and resort operators; 9) food service establishmens; 10) lessors of property; 11) telephone and telegraph, electric, gas, and water utilities; and 12) radio and/or television broadcasting.