Group of Seven rich nations agreed to commit to a global minimum tax of at least 15pc on a country by country basis.
"We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20pc of profit exceeding a 10pc margin for the largest and most profitable multinational enterprises," a communique from G7 finance ministers seen by Reuters said.
"We will provide for appropriate coordination between the application of the new international tax rules and the removal of all Digital Services Taxes, and other relevant similar measures, on all companies."
The minimum tax rate will create a level playing field for companies around the world, British finance minister Rishi Sunak said on Saturday.
He added that the need for national digital services taxes would fall away once the global solution is in place.
The Chancellor defended the decision not to push for a higher global corporation tax rate at the meeting with G7 finance ministers after US President Joe Biden had initially argued it should be 21pc.
Rishi Sunak told broadcasters in London: “I would say a couple of things. First of all, the agreement reached here today says at least 15pc and secondly, it is worth taking a step back.
“This is something that has been talked about for almost a decade.
“And here for the first time today we actually have agreement on the tangible principles of what these reforms should look like and that is huge progress.”
Asked whether he was tying his own hands by having a minimum rate, Mr Sunak replied: “I think what the British public want to know is that the tax system is fair, they want to know that there is a level-playing field – whether people are operating in tax havens or whether large, particularly online businesses, are able to not pay tax in the right places, they want that tackled.
“And that’s what this agreement gives us the ability to do and it has been agreed among G7 colleagues and once we broaden it out and implement it globally, it is a huge prize for British taxpayers.”