G7 finance ministers meeting in France on Thursday agreed on a plan for taxing digital giants that will set a minimum level of taxation for them, while allowing companies to do business in countries where they have no physical presence.

Ministers "fully supported a two-pillar solution to be adopted by 2020", said a statement from France, which chairs the G20 this year.

"New rules should be developed to address new business models... allowing companies to do business in a territory without any physical presence."