Currency Transaction Tax[CTT] Law and Legal Definition
Currency transaction tax (CTT) is a type of tax levied on certain type of currency transaction that is intended for a unique purpose. CTT is a percentage tax on individual foreign exchange transactions, assessed on dealers in the foreign exchange market and collected by financial clearing or settlement systems. CTT is intended to raise money without disrupting the market. CTT is levied on every currency exchange, set at a level low enough not to hinder transactions needed to finance trade in goods and services, or long-term investments. :
Further CTT is a financial instrument for governments seeking to raise large amounts of global, independent, and stable funds. These funds are needed for international development and projects addressing global issues such as public health and climate change. Types of CTT include:
1.Tobin tax;
2.Saphn tax; and
3.Special drawing rights
Legal Definition list
Related Legal Terms
- ABC Transaction [Oil & Gas]
- Agency Transaction (Securities)
- Alternative Mortgage Transaction [Banks & Banking]
- Arms Length Transaction
- Asset Exchange or Conversion Transaction
- Automated Transaction
- Basket Transactions
- Bona Fide Hedging Transactions and Positions
- Colorable Transaction
- Commodity Option Transaction
