Chongqing Municipality, Price Calculation Method for Commodity Premises Tentative Provisions

Promulgated: 7 November 2001
Effective: as of date of promulgation
Interpreting authority: Chongqing Municipal Pricing Bureau
Applicability: These Regulations apply to real property development and sale of commodity premises on the State-owned land within Chongqing's urban planning zone (Article 2). For the purposes of these Regulations, "commodity premises" refers to all kinds of premises developed and marketed by duly qualified real property development and business enterprises, including economically suitable premises (Article 3).

Main contents: According to the Provisions, commodity premises shall be sold at market prices except that economically suitable premises shall be sold at government-guided prices (Article 4). Prices of commodity premises consist of three components, namely, costs, profits and taxes (Article 6). The Provisions specify what costs can be included in prices of commodity premises and what costs should be excluded (Articles 7 and 8). Profit margins may be determined at the discretion of the sellers, but the profit margin on economically suitable premises is capped at 3% above certain major costs (Article 9). Taxes are calculated in accordance with State regulations (Article 10). The Provisions also require the printed selling prices of commodity premises to specify third-party charges and property management charges (Article 13). The Provisions prohibit the inclusion of some charges in third party charges (Article 14).
Related legislation: PRC, Pricing Law , Dec 29 1997, CLP 1998 No.2 p51;Administration of Urban Real Property Development and Business Regulations, Jul 20 1998, CLP 1998 No.7 p53 and Chongqing Municipality, Administration of Urban Real Property Development and Business Regulations