G7 finance ministers meeting in France on Thursday agreed a plan for taxing digital companies such as Facebook and Google that will set a minimum level of taxation for them.

Ministers “fully supported a two-pillar solution to be adopted by 2020”, said a statement from France which holds the rotating chairmanship of the group of world’s most developed countries.

“New rules should be developed to address new business models… allowing companies to do business in a territory without any physical presence,” it said.

“Ministers agreed that a minimum level of effective taxation… would contribute to ensuring that companies pay their fair share of tax,” the statement said.

Source: AFP