TEM would certainly come under the FIF regime. But IMO, basing your investment decisions purely on tax considerations will lead to bad investment decisions. I guess the main consideration would be, does TEM have a net dividend yield of 1.65%? If it does, holding TEM will be cashflow positive for the holder. If not you will have to make sure you have enough income from other investments to cover your annual tax bill. It follows that if the underlying investment in TEM is good, then TEM should be a good long term investment for the holder.

SNOOPY

Thanks Snoopy and others for your replies, dividend yield for current share price of about $13.50 is app 0.6%. Just to clarify Snoopy, the FIF if investing over the tresshold does this mean tax on 5% of invested amount but no further tax on foreign dividends in NZ?