Legal Tax Optimization Mechanisms in Georgia: Business Case Analysis and New Regulatory Developments

This article examines lawful tax optimization mechanisms within the framework of Georgian tax legislation, emphasizing their role in enhancing financial sustainability and regulatory compliance. In the context of increasing digitalization, risk-based tax administration, and regulatory reforms planned for 2026, the study analyzes how businesses adapt tax planning strategies to balance legal compliance with fiscal efficiency.
Using a mixed-methods research design, the paper integrates theoretical analysis with empirical evidence derived from business case studies, questionnaires, and interviews conducted among companies operating in Tbilisi and the Kakheti region. The findings demonstrate that strategically designed tax optimization—grounded in appropriate accounting policies, documentation quality, and economic substance— can reduce tax burdens without increasing legal risks. The study also identifies regional and firm-size disparities in tax planning capacity and highlights the growing importance of proactive, documentation-driven tax strategies under the forthcoming regulatory framework.