Speaking after the meeting, Mr Sunak said: "I am delighted to announce that today after years of discussion G7 finance ministers have reached a historic agreement to reform the global tax system". Those firms would be required to pay taxes on 20 percent of profits they earn above the 10 percent threshold in the countries where they generated the revenue.
Worldwide discussions on the tax issue gained momentum after U.S. President Joe Biden backed the idea of a global minimum of at least 15% - and possibly higher - on corporate profits.
Finance ministers meeting in London agreed to battle tax avoidance through measures to make companies pay in the countries where they do business.
The meeting of finance ministers came ahead of an annual summit of G-7 leaders scheduled for June 11-13 in Carbis Bay, Cornwall.
"Talks are going well", a British source familiar with the negotiations said.
The tax proposals endorsed Saturday have two main parts.
G7 countries reached a landmark agreement Saturday aimed at making it harder for the world's largest companies to avoid paying taxes.
Part of the agreement is that countries such as France that have imposed digital services taxes would remove them in favor of the global agreement. Other countries have followed suit.
"But it has to happen but on an worldwide level, not to be unfair to Ireland or single us out or any other small trade country because trade and jobs are essential to us here and I think our tax system is sound and it is fair", he said.
The other international-tax agreement is about a practice known as digital taxation that members of the worldwide project have been talking about.
"We want the global tax reform process to succeed and recognize this could mean Facebook paying more tax, and in different places", Clegg said on Twitter. It supported awarding countries the right to tax 20% or more of local profits exceeding a 10% profit margin.
Yellen said that both Amazon and Facebook will be covered under the arrangement: "It will include large profitable firms and those firms, I believe, will qualify by nearly any definition".
But major disagreements do remain on both the minimum rate at which companies should be taxed, and on how the rules will be drawn up to ensure that very large companies with lower profit margins, such as Amazon, face higher taxes. Its 12.5% tax rate is one of the lowest in the world, prompting tech giants such as Facebook and Google to make Ireland the home of their European operations.
The global taxation issues have been discussed at the multinational negotiations taking place under a project led by the Organization for Economic Cooperation and Development, and the Group of 20 major economies, involving almost 140 countries.
"The devil is in the details", Corwin said.
Sunak on Friday chaired the first of two days of meetings, held in person after an easing of Covid-19 restrictions and attended by counterparts from Canada, France, Germany, Italy, Japan and the United States.
McHugh contributed from Frankfurt, Germany.