The Lebanese government published the official text of Law 106 that amends several articles of the Tax Procedures Law (Law 44), which the Lebanese Parliament enacted during its session of November 12, 2018. Law 106 provided a definition for "beneficial owner" and required the inclusion of detailed information about beneficial owners in tax reporting. It said that the beneficial owner is a natural person who owns or effectively controls directly or indirectly the outcome of any activity conducted by another natural or moral person in Lebanon, even though the name of the beneficial owner may not appear in the legal documentation related to the activity.

The law aims to improve Lebanon's rating on the exchange of financial information in the second round review of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), which was launched in June 2018. The Global Forum assigned to Lebanon a provisional rating of "Largely Compliant" on the good progress that Lebanese authorities made in implementing the Exchange of Information on Request (EOIR) standard. Lebanon's rating would improve if it implements all of the Global Forum's required recommendations. In this context, the Global Forum is focusing in the second round of its review on including provisions in the Lebanese tax system that are related to beneficial ownership, such as the definition of the beneficial owner, the mechanism to identify a beneficial owner, as well as the process of supervising them. The newly-imposed legal requirements allow the tax administration to monitor and regulate the activities of beneficial owners, which demonstrates Lebanon's commitment to the standards of the Global Forum, and to the fight against money laundering and combating the financing of terrorism. In addition, the country's commitment to global standards would prevent Lebanon from being blacklisted following the end of the second round review, which would deter any adverse financial and economic impact.