Withholding tax is not getting calculated for invoices in foreign currency

Summary:

We have setup withholding tax configurations for Brazil in our UAT environment, and the invoices for Brazil with the local currency - BRL, are having their withholding tax calculated as expected when the invoice gets validated.
But when we tried creating Brazil invoices, but give a foreign currency such as USD, AED, or any other one, it is not calculating the withholding tax when the invoice validation happens.
Is there any setup that was missed which is causing the foreign currency invoices to have withholding calculated?

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