Companies with little or no physical presence in a country will be required to pay taxes if they make money off peoples’ data in that nation. The G7 also agreed to impose a global minimum tax rate. (Financial Times)

Talking point: The deal is a compromise between the U.S., which is seeking to mitigate how much the new tax affects U.S. tech giants, and France, which pushed hard for language specifically targeting tech giants. There’s still a long way to go before a final deal is reached. France is pushing ahead with its three per cent tax on tech companies. The U.S. is pursuing an investigation of that tax on national security grounds, a process that could lead to retaliatory tariffs. Even if the G7 is able to reach an agreement, the new rules are being developed with the OECD. In those negotiations, the U.S. will face not only France, but also India, New Zealand, Spain and Austria, all of which are in various stages of exploring taxes on tech giants. That agreement is still a long way off, even for those most bullish on it. A French official said they hope the OECD will have a deal by the end of 2020.