On Saturday, British Chancellor of the Exchequer Rishi Sunak announced that the Group of Seven (G7) finance ministers had struck "an historic agreement" to change the worldwide tax system to make it fit for the global digital era.

Sunak made the statements after holding the first G7 finance ministers meeting in person in London since the country's coronavirus pandemic began.

"I am delighted to announce that the G7 finance ministers today, after years of discussions, have reached a historic agreement to reform the global tax system to make it fit for the global digital age and crucially, to make sure that it's fair so that the right companies pay the right tax in the right places," Sunak said in a video clip on his twitter.

"We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20 percent of profit exceeding a 10 percent margin for the largest and most profitable multinational enterprises," said a communique released after the meeting.

According to Sunak, the G7 also agreed to the notion of a global minimum corporate tax on large enterprises of at least 15% applied on a country-by-country basis, establishing a more fair playing field for British businesses and combating tax evasion.

According to the communiqué, the G7 will ensure proper coordination between the implementation of new international tax regulations and the elimination of all digital services taxes.

The digital service tax is a measure implemented by nations such as France, the United Kingdom, and Spain to ensure that large Internet corporations pay their fair share of taxes in the countries where they do business, but the US argues it unfairly targets US-based technology firms.

"And that's a huge prize for British taxpayers. This is a very proud moment and I want to thank my G7 finance minister colleagues for their collective leadership and for their willingness to work together to seize this moment to strike a deal of historic significance that finally brings our global tax system into the 21st century," Sunak said.

The UK has made reaching a deal on digital tax a top aim for its G7 presidency, with a fairer system collecting more revenue to fund public services.

At the Group of 20 financial ministers and central bank governors meeting in July, the new agreement is scheduled to be examined in greater depth.