I have heard it takes about 15 working days to get the residence permit. My permit expires July 31, 2015, does anyone know if I need to receive a new permit before the expiration date?

Or can I just submit it anytime before that date, receiving it after July 31 without a fine? Is there a fine if I don't receive it before July 31st?

In other words, do I need to submit the paperwork 15 working days before it expires?

I am pretty sure that I read that last year, some people who applied in Kunming with only a week before the deadline, had their applications rejected on the spot.
I would submit the application asap. Like first thing Tuesday morning. As I think Monday is public holiday.

You did hear correct about the 15 days. However, if your application is accepted, it will usually be processed. Once the application is accepted, you are covered legally.

Rules might change depending on who's handling your paperwork. With these kinds of issues, it's best to ask them in person: www.gokunming.com/[...]

quick question. if I have a Z visa does that mean that I automatically have a residents permit? I've never had to think of this before as my employer has always done it all for me. If not, how do I know when my RP expires?

Usually Z is single entry visa. Once it is used it is expired. The dates of the Z visa are the dates between which you must enter China.
The PSB cancel the Z visa and insert an RP into your passport. The RP will have an expiry date. Many people think that this RP is the visa. It isn't.

@Eric
Once your application is in the system, you are technically covered, HOWEVER as noted, the entry/exit police have the option to reject your application on the spot for applying late.

You can try the profuse apology technique, followed by a letter of apology vowing to NEVER EVER EVER be late applying for your visa ever again, for as long as you live, followed as necessary by the payment of a late or expired visa penalty (which isn't cheap).

If that fails - you're hosed - plan on exiting China, and hopefully re-entering, unless you're passport is stamped persona non grata (PNG) with a date when you can apply to enter China again. If that happens - I'd probably use my time ex china to get a new passport.

You're still in the record system - (NEVER lie), but once you get your NEW visa - the PNG comment won't appear in your NEW passport with your NEW visa and won't raise any questions at the port of entry.

I guess as the guys from psb reading all these articles regards visas here, they will change that "new passport " option soon as well :-) I guess even now, if they found out that u r here and legaly not allowed to be here, it might cause u bigger problem.

@alexez
It's more an issue of whether his new passport/visa is in the computer system and flagged. This was more an issue at the passport entry/exit point - if they see the old flagged passport stamp - they'll scrutinize the passport more carefully, which can raise questions.

In the USA - a flagged passport is virtually a guaranteed detailed search by the TSA (US airport security) - who incidentally were recently made famous for failing 95% of the tests for firearms and explosive devices smuggling, essentially rendering the entire TSA expense and inconvenience rather questionable.

But - as the USA imports roughly USD 40 billion a year in illicit drugs from Mexico across its porous border - I'm not surprised that TSA is a fraudulent, abusive, wasteful government agency - they do however keep a rather large portion of society that could not otherwise gain employment, employed.

The TSA is about as professional as Kunming's traffic police - there are some good ones (maybe 5%?) and generally poorly trained useless sacks of meat (maybe 95%).

15 working days i.e. 3 weeks