06-02-2019, 02:25 PM
RR12-2007
Minimum Corporate Income Tax (MCIT); cost of goods sold - The cost composition of "cost of goods sold" includes only those items which are direct and incidental to the acquisition of the merchandise intended for resale. Expenses for gasoline, repairs, maintenance and depreciation of motor vehicles, the salaries and commissions of the drivers and sales people who canvass on an office-to-office or door-to-door selling, as well as cost of delivery of the products sold by the trader company are not items of "cost of goods sold" which can be deducted from the gross sales for purposes of computing the MCIT. (BIR Ruling No. 026-2001 dated June 13, 2001)
Minimum Corporate Income Tax (MCIT); cost of goods sold - The cost composition of "cost of goods sold" includes only those items which are direct and incidental to the acquisition of the merchandise intended for resale. Expenses for gasoline, repairs, maintenance and depreciation of motor vehicles, the salaries and commissions of the drivers and sales people who canvass on an office-to-office or door-to-door selling, as well as cost of delivery of the products sold by the trader company are not items of "cost of goods sold" which can be deducted from the gross sales for purposes of computing the MCIT. (BIR Ruling No. 026-2001 dated June 13, 2001)