I am a FTE in a company and I earn 120k euros annually. If my employer offers me a business car under a leasing scheme, would that be a tax free benefit for me or would that reduce my net salary?
Benefit in kind would be charged so your wages would be reduced by the tax amount. The rate is based a percentage of on the open market value.
Different if it is a pool car and other members of staff can use it and you are not the sole user.
The lease bit if for the company to process.
Got it. Benefit in kind is also taxed at 52% same as my salary, right? If that's the case, is there any advantage to be paid with benefit in kind for the car leasing over being paid in cash, which is also taxed at 52%?
With a company vehicle, you essentially get free and unlimited use of a vehicle in return for a fixed cost in the form of a BIK supplement on your monthly PAYE/PRSI bill.
That suits some people but not others. If you do substantial private mileage owing to personal circumstances, it might suit you. Otherwise it probably won't.