respect to services Paragraph (1) shall not apply to any amount paid or accrued by a taxpayer for services if— (A) such services are services which meet the requirements for eligibility for use of the services cost method under section 482 (determined without regard to the requirement that the services not contribute significantly to fundamental risks of business success or failure), and (B) such amount constitutes the total services cost with no markup. (e) Applicable taxpayer For purposes of this section— (1) In general The term applicable taxpayer means, with respect to any taxable year, a taxpayer— (A) which is a corporation other than a regulated investment company, a real estate investment trust, or an S corporation, (B) the average annual gross receipts of which for the 3-taxable-year period ending with the preceding taxable year are at least $500,000,000, and (C) the base erosion percentage (as determined under subsection (c)(4)) of which for the taxable year is 4 percent or higher. (2) Gross receipts (A) Special rule for foreign persons In the case of a foreign person the gross receipts of which are taken into account for purposes of paragraph (1)(B), only gross receipts which are taken into account in determining income which is effectively connected with the conduct of a trade or business within the United States shall be taken into account. In the case of a taxpayer which is a foreign person, the preceding sentence shall not apply to the gross receipts of any United States person which are aggregated with the taxpayer's gross receipts by reason of paragraph (3). (B) Other rules made applicable Rules similar to the rules of subparagraphs (B), (C), and (D) of section 448(c)(3) shall apply in determining gross receipts for purposes of this section. (3) Aggregation rules All persons treated as a single employer under subsection (a) of section 52 shall be treated as 1 person for purposes of this subsection and subsection (c)(4), except that in applying section 1563 for purposes of section 52, the