Corporate tax is one of two pillars in efforts for global fiscal reform, the other being a "digital tax" to allow countries to tax the profits of multinationals headquartered overseas.
It additionally said it will continue to support "the poorest and most vulnerable countries as they address health and economic challenges associated with Covid-19".
Yellen had set out to reach an agreement on a global corporate tax rate, but she still needs approval from Congress. President Joe Biden is also gathering support from lawmakers to raise the domestic corporate tax rate to 21%.
"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.
Once implemented, the measures should prevent situations such as Apple's Irish tax fight with the European Union from ever occurring.More news: B.C. reports fewer than 200 new COVID-19 cases, no deaths
In a letter on Friday, the finance ministers of France, Italy and Germany said they would work together to define "a common position on a new worldwide tax system" at the meetings.
Worldwide discussions on tax issues 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.
The first in-person G-7 finance talks since July 2019 came as momentum builds for implementing a common minimum tax rate for globally operating companies, with the aim of preventing them from shifting profits to low-tax jurisdictions, following a recent US proposal for a tax of at least 15 percent on corporate profits.
Ministers from the US, Japan, France, Canada, Germany and Italy will attend the two-day meeting at Lancaster House in London, with Donohoe attending as President of the Eurogroup.
The news comes as official data showed Ireland's economy grew nearly 8% in the first quarter of 2021, during a harsh lockdown when most shops closed, as multinational firms' revenues helped it continue to buck pandemic downturn trends.More news: French Open deletes tweet on Naomi Osaka press blackout
"For us, it's a starting point".
The United States has proposed a minimum corporation tax rate of 15%, above the level in countries such as Ireland but well below the average in the G7. "Today's agreement is a significant first step towards certainty for businesses and strengthening public confidence in the global tax system".
"We are just 1 millimeter away from a historic agreement", French Finance Minister Bruno Le Maire told the BBC.
German finance minister Olaf Scholz told reporters it was the "right time" for a global tax deal given the vast sums spent by governments "to protect citizens, stabilise the economy and save jobs" since previous year.
Britain wants multinationals to pay taxes that reflect their operations, as governments seek to fix finances battered by slashed tax receipts plus vast spending and borrowing during the pandemic.
The Government has said it is ready to go it alone with a local digital tax if the G7 deal falls over.More news: Why a commission to investigate January 6 was not established