MeePeeMai

Yes, exactly. Imagine if someone sells their home in their home country (in the same year that they are a "tax resident" of Thailand) and makes a large profit on that sale. For me it would be tax free up to $250,000 USD in the USA. The taxes that would be due here for me would be 35% (since my other income sources would already push me up into that Thai tax bracket). $250,000 USD x 35% = $87,500 USD or 3,213,875 Thai Baht in Thai tax due (at the current exchange rate). To compound upon that, I have owned my home for more than 23 years and the equity in that home is much more than 250k. So yes, you are correct... Much more tax than what I would pay in the USA.

I feel your pain (10 years late). I've had several severe kidney stone attacks in my day and the 10 mg of morphine they gave me in the ambulance didn't even touch it. The Dilaudid they gave me in the ER completely knocked the pain out almost instantly. That stuff is very strong. Anybody who's had a severe kidney stone attack knows what real pain is and you will do anything to get relief. All I can say is thank Buddha for Dilaudid 555

I understand, but it's helped me a lot by way of forcing me to examine my potential Thai tax situation. It's also prodded me to look deeper into the USA/Thai tax treaty and try to figure out what I will be up against if this becomes law. I have also learned a lot from others on the current Thai tax rules as well as allowing me to adjust my plan B and C accordingly. I too want the facts but it's too early to get any right now. Going over scenarios and being prepared can't hurt though.

Thanks for a good laugh! I needed that.

I like to plan ahead and be prepared for anything that I see coming. That's just me. It might fall through the cracks or it might not be as bad as it seems but then again, I want to be prepared and be proactive (not reactive). I guess my biggest fear is that they will make it retroactive to 2024 in which case many will get caught out.

Here's a thought If I sell my house in the USA, as a single home owner I am allowed up to $250,000 in capital gains TAX FREE ($500,000 for married couples). That means no taxes will be due on the first $250,000 of profit on the sale. Any gains over and above the 250k/500k would be taxed at the 15% long term capital gains rate. Under the new proposed tax rules, how much tax would I have to pay here in Thailand on that sale of my home if I made a profit of 250k (or more). Something to think about.

Check if your country has a Double Tax Agreement or Double Tax Treaty with Thailand. That will basically spell out which country gets to tax you on certain things (either partially or exclusively) and if you get to claim a "credit" for taxes already paid in one country or another. If your country does not currently have a tax treaty with Thailand then that is a good question. What happens in that case? I don't know.

If I could buy and own land and build my own place as a single retiree living here then it would certainly be more appealing. I'm not fond of navigating obstacles and jumping through hoops just to get a work around.

Well those non citizens retirees in the USA can buy and own property to name but one example.

Landlords (at least in the USA) get to deduct or write off many things on their taxes i.e. their property tax, utilities paid, depreciation of the rental, interest on the mortgage, fire insurance, flood insurance, hurricane insurance, repairs, maintenance costs, landscaping or yard maintenance, management fees etc. If the Thai RD only sees and taxes your rental "income" and disallows your expenses (mentioned above) either by law or by way of making the burden of proof too onerous then this will be a big deal for some of us.

Right, I just read about this. Unacceptable to me.

I know they are focusing on taxing individuals who don't currently pay taxes but to think that the Thai authorities will let you slide or give you a pass just because you pay taxes in another country (US for example), or leave those of us on a Non-O or Non O-A is probably foolish. I think if they bother to see this through then they will go after every baht they can get. Even if they were to adhere (strictly) to the double tax treaty, in my own case (the USA) then I will get screwed. I too don't want to be blindsided. Depending on which country one has his citizenship, it might be wise to start reading and understanding your countries tax treaty with Thailand (if there is one in place).

I have read that the current government is not fond of waiting until things get legislated and have work arounds in place. Whether this is true or not I don't know but things don't look good to me right now. If it gets legislated or implemented and they go after 2024 worldwide income then it will be too late to escape the trap if I stay here more than 179 days this year.

It might be, I may be jumping the gun but I'm not going to roll the dice and get caught up in a dragnet of sudden or retroactive worldwide tax implementation here. Just the fact that they are even talking about it and showing their cards to us is a red flag and I don't want to call their bluff on this one. The last change on remittances was surprising but actually not too bad, but this latest bombshell is more than I care to deal with or worry about. It's just the straw that will break the camels back so to speak for me.

I will also need to sell my BTC and BTC mining stocks sometime this year (or next) depending on the market cycle... well, there goes another 35% (if I stay here any longer). The signs are pretty clear to me that I would be foolish to stay here and live on "hopium". If the only income I had was my government pension (which can be taxed ONLY by the USA under the current tax treaty), then I wouldn't have any tax problems here and I could just continue to live here but that's not the situation I'm in.

For example, The 35% Thai tax which would be due on my long term capital gains (vs the 15% I already pay to the IRS) is unacceptable to me (overtaxed). I did a ROTH conversion in 2024 in the amount of $79,000 which will be taxed by uncle Sam in the 22% tax bracket... that would mean that I would have to pay another 13% in Thai tax (if the tax treaty was applied or 35% if it was not properly applied). I have rental income (on my house) of $48,600 per year in the USA which would be taxed at 35% here (unacceptable). I don't even pay anywhere close to 35% tax on my short term gains in the USA now but that income would be taxed at 35% here (or I would have to pay the difference if the tax treaty was applied). Overtaxed here or not?

I have a female friend who graduated from a university here in Udon Thani last year and got a job teaching at a government elementary school (she was shipped way, way out to the sticks in Sakon Nakhon). She didn't receive any salary at all for the first 2 or 3 months it does happen here. She also had to spend 6000 baht on her uniforms before she started work and also had to rent a place to live near the school (no teacher housing there). It's sad what most Thai's have to go through just to get a "good government job" which pays peanuts and the promise of a very small pension someday.

Feels like a gut punch... out of the blue!

I've only lived here for 7 years but now I feel so tarnished that I don't even want to come back and spend 179 days a year here anymore (on principle). Why should I come here (even as a tourist) and spend my money after being treated like this? I'm leaving on June 16th and I will be back next year only to sell my pickup, my motorbikes and everything else I bought here (and then I'll be leaving for good). I'm just glad I didn't sell everything I own in the US (house, truck, motorcycle etc.). This is exactly the reason I didn't cut ties and sell everything in the in my home country because I knew something like this could happen here someday. To say that I am very disappointed would be a huge understatement but I'll just take it on the chin and move on.

That's a fact 5555

The problem is that they usually implement their plan first (without any planning), then constantly tweak it.... or just wing it as they go. No clear guidance, no consistency, no forethought, all the while paving the way for confusion and "luck of the draw" so to speak with regards to your own personal experience while navigating the maze blindfolded and at the mercy of the uniformed official you happen to be dealing with.

Sounds like a solid plan! I certainly wouldn't pay 10k a year (extra) just for the privilege of staying here more than 180 days a year. 179 days a year = Free (other than annual extension fee) 180 days (I wouldn't chance it) 181 days a year = 10k USD I'm going to do the same thing because my Thai tax bill would be much higher than yours I'm afraid.

a $10k USD or 365,000 baht Thai tax bill? Yikes! That's going to hurt.

Good strategy (for US taxes)! Just remember to adhere to the 30/60 day "wash sale" rule (I got caught out on that one a few times).

Thanks for the clarification. I stand corrected.