The tax authority for Brazil verifies how to manage foreign tax offsets (FTO) and how to apply income tax treaty provisions for cross-border payments for services fees and described that under the presumed profit method, companies that are taxed are not permissible to offset income tax withheld overseas against income tax due in Brazil. If an income tax treaty for avoiding double taxation exists and is in effect between Brazil and the country where the services are rendered then companies taxed under the presumed profit method can offset income tax withheld abroad.